without borders: Solving problems together, and winning.
Following on from my article, “New Zealand is Poor Because It Chooses To Be,” I have had numerous conversations with friends and manufacturers about the Government’s role in innovation, productivity, and manufacturing.
I would like to note that I have left Government service, and the views and guidance I share below are my own. However, they are informed by over 20 years of experience working closely with manufacturers, including the last five years within Government, and the good fortune of gaining a global perspective on interventions other Governments have made to increase manufacturing productivity and longevity.
Should the Government take action to help manufacturing?
One could argue that the Government already has a lot on its plate, with health, education, police, and infrastructure dominating the headlines, while investing in the future prosperity of the country often seems more challenging. However, it is globally recognized that a strong manufacturing sector is a cornerstone of a
Building a competitive future: The role of Government in NZ Manufacturing
By Sean Doherty
dynamic, resilient, and competitive economy. It underpins employment, exports, productivity, and innovation.
To put this in the New Zealand context: manufacturing directly employs about 11% of the workforce and contributes approximately 10% to GDP.
In 2024, business spending on Research and Development (R&D) reached a record high. However, despite this investment, we are seeing productivity flattening, which squeezes business margins and makes it difficult for businesses to invest in growth and their people.
What does the Government support today?
While the Government supports numerous business programs, below are some recommendations for manufacturers.
I suggest engaging with these initiatives and understanding how they might fit into your plans, so you can invest your time wisely and potentially benefit both your business and the wider industry.
Advanced Manufacturing Aotearoa (AMA)
This is the only direct investment from the 2025/26 budget focused on manufacturing. AMA is a small, industry-led nationwide organisation dedicated to the success of manufacturers.
It plays an important role as a connector and facilitator by offering practical advice to manufacturers and acting as a conduit between Government and industry.
Eight reasons why how you communicate sustainability matters.
Regional Partner Network (RBP)
Available to all registered businesses, this service offers free advice and is well worth connecting with if you have fewer than 50 full-time employees.
The network is also known for its Management and Capability Development Subsidy Grant, which can cover 50% of training costs up to $5,000 in areas such as lean manufacturing, business operations, business planning, finance, and other management training.
Business.govt.nz
This is the Government’s one-stop online hub for business advice, especially useful for small business owners. It offers excellent resources such as e-learning modules and guides on how to write a business plan or optimize a business process by mapping it end-to-end.
Investment Boost tax deduction
Introduced as part of Budget 2025, the Investment Boost is a new tax deduction aimed at encouraging business investment.
It provides an upfront tax benefit, allowing businesses to claim an immediate 20% deduction on qualifying new assets put into use on or after May 22, 2025. The remaining 80% is depreciated over time. Most new depreciable business assets qualify, including commercial and industrial buildings.
R&D funding
Although Callaghan Innovation is being disestablished, all R&D grants and funding are continued on Page 20
Secure supply of energy and data to moving industrial equipment.
• Large size range
• Vertical travels
• Energy tubes
• Hygienic chains
• Solutions for long travel
• Guide troughs
• Readychain
• Robotic, 3D
• Circular movement
HUGE range of high quality flexible cables
• Control cables
• Single cores
• Data cables
• Sensor/Actuator
• Intrinsically Safe
• VSD/EMC cables
• Halogen Free cables
• High temperature
• Harsh Conditions
• Crane cables
• Profibus cables
• Bus/DeviceNet
• Solar cables
• Instrumentation
• Flat cables
• Curly cords
Connectors
Largest range of flexible conduits for cable protection
• Conduits
• Conduit fittings
• Divisible systems
• Jumbo systems
• Conduit Accessories
• Braided cable protection
• Fire barrier solutions
• Food and beverage
• EMC systems
• Ex, ATEX, IEC EX
Industrial connectors for many industries
• Rectangular multipole connectors from ILME
• Single pole Powerline connectors from TEN47
• EPIC connectors from Lapp Group
• M23 circular connectors from Hummel
• Circular connectors specifically for the entertainment/stage lighting industry from Socapex
Sensors
Safety engineering solutions from EUCHNER
• Multifunctional Gate Box MGB
• Transponder-coded safety switches
• Electromechanical safety switches
• Magnetically coded safety switches
Sensor technologies for automation
• High-Precision Laser Distance Sensors
• Ultrasonic Sensors
• Inductive Sensors
• Fluid Sensors
Do we do enough to honour manufacturing pioneers?
From a West Auckland garage start-up to a $225m global biotech expansion, Professor Yihuai Gao’s journey shows how manufacturing innovation can transform New Zealand’s economy if only we celebrate and support the people behind it. NZ Manufacturer business advisor and director of public relations agency Impact PR Mark Devlin, says Gao’s success highlights the need for New Zealand to broaden its definition of innovation beyond agriculture and technology start-ups.
When New Zealand talks about innovation, the spotlight too often shines on technology start-ups, film, or agriculture. Yet the nation’s manufacturing success stories are equally compelling and frequently overlooked. The recent recognition of Professor Yihuai Gao by Massey University is a timely reminder of the people driving breakthroughs behind the scenes of our manufacturing economy.
A life in science and manufacturing
Earlier this month, Massey University honoured Professor Yihuai Gao for a two-decade scientific collaboration centred on medicinal mushrooms. Gao, founder of nutraceutical manufacturer Alpha Group, has built a bridge between science, manufacturing, and international commerce.
What began in 1998 as a small garage start-up in West Auckland is now one of New Zealand’s largest dual-market export operations. Alpha Group operates a biotech manufacturing facility in Manukau alongside a growing international footprint.
Its nutraceuticals, built on validated bioactives from fungi and plants, are distributed to markets across Asia and beyond.
This is not just a research story. It is a manufacturing story. Turning fungi science into certified health products that meet stringent global standards requires advanced processing, regulatory expertise, and scale.
Alpha Group exemplifies the type of high-value manufacturing New Zealand needs more of, yet the name of its founder is unfamiliar to many outside the sector.
From garage to global
Alpha Group’s trajectory illustrates how entrepreneurial science can fuel manufacturing expansion. This year the company announced construction of a NZ$115 million biotech facility in Ningde, China. At 60,000m², the site will integrate research, testing, and production close to its largest export market, a move expected to generate over NZ$225 million in annual revenue.
It is the physical realisation of a long-term dual-market strategy that leverages New Zealand’s scientific strengths while harnessing China’s demand and infrastructure. The facility will shorten lead times, expand capacity, and funnel new investment back into New Zealand R&D and jobs.
For a business that began in a West Auckland garage, the scale of this global expansion is staggering.
Breakthroughs in fermentation
At the heart of this success lies one of New Zealand’s most significant biotech breakthroughs: a patented fermentation method for Ganoderma Lingzhi, a mushroom revered in Chinese medicine for its immune and cardiovascular benefits.
Traditionally, Lingzhi takes six months to cultivate in the wild. Alpha Group’s method grows it in fewer
than ten days, producing consistent, potent yields.
Approved by New Zealand’s Environmental Protection Authority, the technology has become the first of its kind to be commercialised here. More than that, it provides a platform adaptable to other fungi, plants, and marine organisms.
This innovation not only secures Alpha’s commercial edge but also positions New Zealand as a serious contender in the fast-growing functional food and nutraceutical sector.
As Gao himself has noted, fermentation offers a clean, climate-resilient pathway to produce bioactive-rich compounds at scale without depleting ecosystems or depending on arable land. In a world grappling with food security and health challenges, this is more than manufacturing. It is manufacturing with purpose.
Why recognition matters
Manufacturing has long struggled with perception in New Zealand. Too often it is seen as traditional or low-tech, rather than the bedrock of economic resilience it truly is.
Figures like Professor Yihuai Gao prove otherwise. Manufacturing today is about blending science, technology, and global supply chains to create high-margin, export-led businesses.
Recognition matters. It inspires the next generation of innovators, strengthens the industry’s visibility in policy circles, and demonstrates the value of university and industry collaboration.
Gao’s partnership with Massey University’s Riddet
Institute shows how academic research can translate into world-class products when coupled with entrepreneurial drive and manufacturing excellence.
A call to celebrate our innovators
As a country, we celebrate rugby coaches, Oscar winners, and tech unicorns. But how often do we put manufacturing innovators on the national stage?
People like Professor Yihuai Gao, holder of 58 patents, producer of dozens of globally distributed products, and leader of a company that has invested more than NZ$830 million in global infrastructure, should be household names.
If New Zealand wants to position itself as a hub for advanced manufacturing, then we must do more than invest in research. We must champion the individuals who turn ideas into manufactured reality. Recognising pioneers like Professor Gao is not just a courtesy. It is an economic strategy.
What began in 1998 as a small garage start-up in West Auckland is now one of New Zealand’s largest dual-market export operations.
DEPARTMENTS
LEAD
Building a competitive future: The role of Government in NZ Manufacturing.
BUSINESS NEWS
The AI Con: How to Fight Big Tech’s Hype and Create the Future We Want.
Jobs fall again with no plan from the Government.
Leaders without borders.
Reinventing Agri-Food: How Argon & Co can help NZ manufacturers lead the way.
EMA
Company Profile
Salus Aviation’s advice for successful expansion. How the EMA’s Manufacturing Safety Dashboard can help to transform workplace safety.
SMART MANUFACTURING
Smarter manufacturing: Doing more with less, for longer.
Building resilience through age-inclusive practices in New Zealand manufacturing.
COMPANY PROFILE
Huski wine cooler exports surge during record US heatwave.
ANALYSIS
AI is peeling back the layers of ‘low-value’ work.
WORKSHOP TOOLS
Caring for your bearings.
ENERGY
Energy efficiency.
DEVELOPMENTS
NZ Vocational Education and Training Research Forum returns in-person.
Tennex Group backs Nurox Hydrothermal to drive sustainable hazardous waste management. Turning dreams into reality with New Zealand Space Scholarships.
Real Steel constructing state-of-the-art factory in Hautapu Industrial Park.
ANALYSIS
Does AI actually boost productivity? The evidence is murky.
THE LAST WORD Is software development manufacturing?
ADVISORS
Ian Walsh
Ian Walsh is a leading expert in designing and implementing transformational improvement programmes, with over 30 years of experience helping businesses drive operational excellence and long-term success. A Six Sigma Master Black Belt, he has worked with both New
Zealand’s top organisations and global multinationals including Kimberley Clark, Unilever, Guinness to unlock productivity, reduce costs, and optimise business performance. Ian has been at the forefront of operational improvement, working at all levels—including Boards—to deliver high-impact change. Ian continues to play a key role in advancing business excellence, supporting Auckland University and The Icehouse with expert insights on productivity, operational improvement, and best-practice methodology.
Dr Barbara Nebel
CEO thinkstep-anz
Barbara’s passion is to enable organisations to succeed sustainably. She describes her job as a ‘translator’ – translating sustainability into language that businesses can act on.
and Manufacturing.
7 11 15 18 19 21 24
Mark Devlin
Having owned food manufacturing and distribution businesses for a decade, Mark Devlin now runs Auckland public relations agency Impact PR. Mark consults to several New Zealand manufacturing firms including wool carpet brand Bremworth, aircraft exporter NZAero and cereal maker Sanitarium.
Insa Errey
Insa’s career has been in the public and private sectors, leading change management within the energy, decarbonisation, and sustainability space. Insa holds a Chemical and Biomolecular BE (Hons) from Sydney University. She is a member of the Bioenergy Association of NZ and has a strong passion for humanitarian engineering, working with the likes of Engineers Without Boarders Australia.
Insa is a member of Carbon and Energy Professionals NZ, been an ambassador for Engineering NZ's Wonder Project igniting STEM in Kiwi kids and Engineers Australia Women in Engineering, increasing female participation in engineering.
Jane Finlayson is Head of Advanced Manufacturing at the EMA, and has 25-years’ experience in business and economic development. She is passionate about empowering businesses to grow, innovate and embrace Te Ao Māori.
Hon Chris Penk Minister for Small Business
PUBLISHER
Media Hawke’s Bay Ltd, 121 Russell Street North, Hastings, New Zealand 4122.
MANAGING EDITOR
Doug Green
T: 027 348 1234
E: publisher@xtra.co.nz
CONTRIBUTORS
Holly Green, EMA, Business East Tamaki, Ian Walsh, Adam Sharman, Mark Devlin, Nicholas Russell, Jane Finlayson, David Altena, Rob Bull, Chris Penk
Shyamini Szeko
ADVERTISING
T: 027 348 1234
E: publisher@xtra.co.nz
DESIGN & PRODUCTION
:kim-jean:
E: kim.alves@xtra.co.nz
WEB MASTER
Julian Goodbehere
E: julian@isystems.co.nz
PUBLISHING SERVICES
On-Line Publisher
Media Hawke’s Bay Ltd
DIGITAL SUBSCRIPTIONS
E: publisher@xtra.co.nz
Free of Charge.
MEDIA HAWKES BAY LTD
T: 027 348 1234
E: publisher@xtra.co.nz
121 Russell Street North, Hastings
NZ Manufacturer ISSN 1179-4992
Vol.17 No.8 September 2025
Actions for success
Love lateral thinkers and one example of this is the article on The Last Word (Page 29) by David Altena and Rob Bull.
Is software development manufacturing? Asks what if our most scalable factories do not make anything you can touch?
What if software, weightless, intangible and infinitely reproducible, is already the most powerful manufacturing industry we have?
Have a read and feedback.
*Sean Doherty (Page 1) does an excellent job explaining the role of organisations who work closely with manufacturers. Your company may well be collaborating with them, if not, contact those who can be of assistance. And ask about their support mechanisms.
*As we know, New Zealand manufacturers and businesses need qualified and experienced staff to keeping progressing and be successful.
And they cannot always find the right staff.
Some of this is due to a reluctance to employ older, skilled workers who can add immeasurably to the path going forward.
Shyamini Szeko has researched extensively age-inclusive practices in New Zealand manufacturing and found the subject to be about resilience, knowledge and how we value people at different stages of their working life.
Shyamini’s article appears on Page 18 of this issue and I hope when you read it you and your company can see how incorporating older workers into your staff can add value –value your company may well be missing.
Success Through Innovation
Record high number of small businesses taking advantage of Regional support and advice
In the financial year 2024/25, the Regional Business Partner (RBP) Network recorded its highest level of engagement outside the COVID-19 response period, supporting nearly 4,500 businesses.
This is a 7 per cent increase over the previous year and a sharp 13 per cent rise compared to 2022/23.
The RBP Network is a nationwide initiative delivered in collaboration with business chambers, economic development agencies and national provider Poutama Trust to provide tailored support and resources to help small business across New Zealand grow and succeed.
Together with Business Mentors New Zealand (BMNZ), these programmes are vital tools in lifting business capability and resilience.
Director Business & Consumer Diana Loughnan says the growth in engagement
“Customer satisfaction is high, and many businesses are sharing their positive experiences with others,” says Ms Loughnan.
“If you’re a business owner looking to grow, adapt, or simply get advice, we encourage you to connect with your local RBP or Business Mentors New Zealand.”
In addition to the support provided by the network for businesses, the Ministry of Business, Innovation and Employment (MBIE), in collaboration with BMNZ, have provided training to Business Mentors and Growth Advisors across New Zealand to ensure Kiwi businesses have a trusted pathway to get support to implement AI.
The training has helped advisors and mentors identify opportunities where AI can add value and guide businesses on their journey to adoption.
Small businesses are critical to our
By equipping mentors and advisors with the right tools and knowledge, businesses can take practical steps toward using AI to boost productivity and stay competitive, without needing a large tech team or budget.
In addition to the AI initiative, MBIE has increased its funding to BMNZ by $350,000 per annum for the next two years. This funding will enable BMNZ to support an additional 750 businesses annually.
Together with Business Mentors New Zealand (BMNZ), these programmes are vital tools in lifting business capability
Leaders without borders: How Altus®’s leaders are solving problems together, and winning
Adam Harvey Business Performance Partner - Manufacturing The Learning Wave
Every manufacturing leader knows the cost of problems no one owns. A defect that slips through. A rework job that eats up a shift. A delay that puts you on the back foot with a customer.
Often, these issues live in the gaps between teams or sites. The kind of problems that don’t belong to one department. So they linger, costing time, money, and goodwill.
At Altus®, they decided to change that.
They knew that stronger results in productivity, quality, safety, and engagement wasn’t just about better processes. That it was about better leadership. The kind that connects the dots across the business.
That’s how Elevate was born, a seven-month leadership journey for Altus® team leaders and managers built around one big idea: collaboration. People first, and then process
Instead of starting with processes or machinery, Elevate began with a much more human question: What if the key to lifting performance wasn’t in the tools we use, but in the way our leaders work with each other and their teams?
Elevate wasn’t about taking them out of the
business to talk theory. It was about giving them the tools, space, and confidence to lead their people. It was about helping leaders under pressure realise that they didn’t have to go it alone. That the best leaders understand that real success comes from collaborating with others.
Learners developed skills to lead through vision and values, improve cross-departmental collaboration, and seek out opportunities to solve problems both with and within their teams.
Solving real problems, delivering real results
The heartbeat of the programme was the Team Performance Improvement Project, small, cross-site teams tackling real Altus® challenges.
One team tackled a costly issue: scratched products during site transfers. The project leads laid out the numbers: “It’s costing us big every month.” Collaborating across departments, the team found the root cause, crafted a plan that would guarantee the biggest impact, and trained their team on the new packaging process.
The result? A reduction in the scratch rate to just 16% of the original figure – an improvement of around 70%. And they’ve kept it there month after
month.
And that was just one of several projects delivered through the programme, each one tackling a real issue, delivering measurable improvements, and building leadership muscle at the same time.
The real shift
The biggest change wasn’t just in the projects. It was in the way leaders approached problems.
They stopped firefighting alone. They started bringing the right people into the room, looking at the root causes, asking better questions, encouraging new ideas, and working out the best way forward. Leaders began picking up the phone to other departments before making decisions. They started asking “why” more often – and listening to the answers. They created space for their teams to think, contribute, and own solutions.
continued on Page 10
Jobs fall again with no plan from the Government
NZCTU Te Kauae Kaimahi Economist Craig Renney is saying that new data released by Statistics New Zealand shows that the labour market is even more bleak than feared, with the loss of more than 10,000 jobs in just three months.
“What we are seeing is an unemployment crisis in New Zealand, and this Government is failing to do anything about it. Working people are paying the price of their inaction,” said Renney.
“There are more than 50,000 fewer jobs than in December 2023, with widespread falls across a wide range of sectors, including construction (16,230 fewer jobs), manufacturing (8,707), retail (6,091), professional services (7,228), IT and telecommunications (3,527), and public administration (6103).
“Every region has seen job losses. Since December 2023 there have been 23,000 jobs lost in Auckland – 35 jobs lost every day. Nowhere in the country has escaped the pain of rising unemployment, even in areas where the local economy is stronger.
“The economy is particularly difficult for younger workers, with 19,842 fewer filled jobs for 15–24-year-olds than this time last year, and 41,000 fewer filled jobs than this time 2 years ago.
“Total gross earnings rose 1.5.% last year – well below current inflation of 2.7%. This supports data we have seen elsewhere that many workers are falling further behind the current cost of living. This has likely been compounded by real-terms cuts in the minimum wage, and fewer jobs being available.
“For the past 9 months, the number of jobs being lost was declining, but is now rising quickly again. Outside of a COVID-affected quarter, there was not a single quarter where filled jobs declined going back to June 2019. Now we have had more than a year of continued job losses across the country.
“The Government has no plan to manage this crisis and has resorted to sanctions and removing people from jobseeker support rather than tackling the issue.
“More job losses and business closures are being announced every day, and the Government does not seem to have any ability to recognise the growing scale of the challenge,” said Renney.
After the
Idea: What
It
Really
Takes to Create and Scale a Startup
by Julia Austin
Entrepreneurship expert Julia Austin shares battle-tested strategies to help founders and startup joiners build their venture from the ground up in this masterclass in intentional entrepreneurship.
So you want to start a company. Or you were crazy enough to join a startup. You had a great idea, you built a prototype, and maybe you even raised some money. Now what?
Julia Austin is here to answer that big question. She has both experienced and observed that the differentiator between the startups that succeed and those that fail is operational excellence.
A lot of entrepreneurs are great at the idea part but do not anticipate the details required to actually run and scale a new venture.
Drawing on Austin’s extensive experience at renowned startups like Akamai, VMware, and DigitalOcean and the hundreds of founders and startups she has educated, coached, and advised, After the Idea is full of time-tested strategies to help founders, investors, and employees navigate the operational challenges of startup ventures, including customer development, scalability, process optimisation, team management, and more.
This accessible set of techniques is for anyone determined to turn a great idea into a solid success.
The Government has no plan to manage this crisis and has resorted to sanctions and removing people from jobseeker support rather than tackling the issue.
The AI Con: How to Fight Big Tech’s Hype and Create the Future We Want
by Emily M Bender and Alex Hanna
This is a smart, incisive look at the technologies sold as artificial intelligence, the drawbacks and pitfalls of technology sold under this banner, and why it’s crucial to recognise the many ways in which AI hype covers for a small set of power-hungry actors at work and in the world.
Is artificial intelligence going to take over the world? Have big tech scientists created an artificial lifeform that can think on its own? Is it going to put authors, artists, and others out of business?
Are we about to enter an age where computers are better than humans at everything?
The answer to these questions, linguist Emily M. Bender and sociologist Alex Hanna make clear, is “no,” “they wish,” “LOL,” and “definitely not.” This kind of thinking is a symptom of a phenomenon known as “AI hype.”
Hype looks and smells fishy: It twists words and helps the rich get richer by justifying data theft, motivating surveillance capitalism, and devaluing human creativity in order to replace meaningful work with jobs that treat people like machines.
In The AI Con, Bender and Hanna offer a sharp, witty, and wide-ranging take-down of AI hype across its many forms.
Bender and Hanna show you how to spot AI hype, how to deconstruct it, and how to expose the power grabs it aims to hide. Armed with these tools, you will be prepared to push back against AI hype at work, as a consumer in the marketplace, as a skeptical newsreader, and as a citizen holding policymakers to account. Together, Bender and Hanna expose AI hype for what it is: a mask for Big Tech’s drive for profit, with little concern for who it affects.
Reinventing Agri-Food: How Argon & Co can help NZ manufacturers lead the way
The agri-food sector is undergoing rapid change globally, driven by climate pressures, consumer demands, regulatory shifts, and advances in digital technology. To facilitate necessary collaboration and digitalization with agri-food supply chains Argon & Co and Supply Chain Movement mapped the entire ecosystem: this comprehensive visualization includes farmers, suppliers, manufacturers, logistics companies, wholesalers, data providers, governments, business customers, and consumers.
For New Zealand manufacturers, particularly in food and beverage, these shifts present both challenges and opportunities. The key to staying competitive lies in building resilience, embracing digital tools, and embedding data-driven decision making.
At Argon & Co, we partner with clients across the globe—including here in New Zealand—to help manufacturers navigate this transformation. Our work with leading international food businesses highlights practical ways local manufacturers can gain an edge:
Future-Proof Supply Chains with Digital Twins
In the U.S., we helped a major dairy processor create a Network Digital Twin to optimise production, transport, and asset utilisation. This delivered 12% logistics savings in just four months while shaping a 10-year network strategy. For NZ manufacturers, where seasonality, export routes, and carbon costs are central, digital twins provide the visibility and agility needed to make confident long-term investment decisions.
Smarter Forecasting with Machine Learning
We worked with a European multinational to implement a machine learning forecasting tool,
continued from Page 7
Leaders without borders: How
One leader told us:
“I learned that leadership is not about holding a title. It’s about setting a vision, motivating people, and creating an environment where everyone can contribute effectively.”
Another said:
“Elevate helped me recognise my potential and how to use it to influence my team and the people I work with.”
Elevate proved that when leaders think and act like this, they get more ideas, better solutions, and stronger productivity.
improving accuracy by 13 percentage points and halving planning time. In the NZ context—where labour shortages and volatile global demand put pressure on workforce planning—AI-driven forecasting can help manufacturers better manage staffing, transport capacity, and customer delivery expectations.
Data-Driven Pricing and Margin Protection
For an agro-ingredient producer, we developed a real-time pricing dashboard that improved transparency and boosted margins by over €8m in the first year. With NZ exporters exposed to raw material volatility, freight costs, and currency swings, similar tools can give sales teams the confidence to protect margins while remaining competitive in global markets.
Why Partner with Argon & Co?
- Global experience, local presence: We bring proven international case studies to New Zealand’s unique manufacturing landscape.
- Practical transformation: We embed capability within your teams so improvements are sustainable long after the project ends.
- End-to-end expertise: From supply chain design to digital enablement, forecasting, and pricing, we help manufacturers achieve real, measurable change.
New Zealand has long been recognised for world-class food production. By leveraging digital transformation and sustainable innovation, manufacturers can maintain this leadership on the global stage.
At Argon & Co, we’re ready to help you unlock savings, strengthen resilience, and future-proof your operations.
Altus®’s
leaders are solving problems together, and winning
Bottlenecks disappeared, innovation grew, and teams started pulling in the same direction. And that showed up where it matters: in output, quality, customer satisfaction, and safety.
What’s your 70% moment?
If you run a manufacturing business, you already know the pressure: meet targets, keep quality high, stay safe, and keep customers happy.
You also know how quickly a lack of leadership can cost you, in rework, waste, delays, and missed opportunities.
The temptation is to throw more at processes
and machinery. But Altus® has proved that there is another way. That better leadership is just as powerful, if not more so.
Altus® proved that better leadership changes the numbers you care about most. Not with slogans or theory, but with measurable savings, stronger teamwork, and a culture shift you can feel.
So here’s the question:
What’s the cost of your leaders staying in their silos? And what could you gain if they didn’t?
Because the answer might be worth far more than you think.
Salus Aviation’s advice for successful expansion
Salus Aviation’s story began in 1936 as a small aviation support provider based in rural Auckland, right next to Ardmore Airport.
Over time, the company evolved through mergers and acquisitions to create a vertically integrated aviation company.
Today, it’s a true ‘nose-to-tail’ provider, leasing out aircraft, performing line maintenance, conducting heavy overhauls, manufacturing specialist equipment and supplying parts.
The EMA’s Nicholas Russell sat down with Salus Aviation CEO Greg Edmonds to discuss the company’s evolution, which has been driven by customer demand for comprehensive solutions and a desire to prove that a New Zealand company can compete with the biggest players internationally.
Q: What does Salus Aviation’s manufacturing workshop produce?
Greg Edmonds: We marry stringent aviation standards with world-class design and MRO capabilities to serve our clients globally Our experienced design and manufacturing teams create specialist role equipment and modifications for both fixed-wing and rotary aircraft.
Operating under NZCAA Part 148 manufacturing
certification, we build and install advanced systems tailored to specific mission profiles – anything from agricultural operations to search and rescue.
We also manufacture crop-spraying systems, infrastructure inspection role equipment, and even full aircraft assemblies and modifications.
Our bespoke solutions extend aircraft capabilities and make operators safer and more efficient. We marry stringent aviation standards with world-class design and MRO capabilities to serve our clients globally.
Q: What lessons can other manufacturers draw from Salus Aviation’s successful expansion?
Greg Edmonds: Vertical integration matters: We offer a ‘nose-to-tail’ service suite: design, MRO, parts supply, line maintenance, aircraft leasing and heavy overhaul. That gives us resilience and a competitive edge.
Certification and quality are non-negotiable: Our Part 148 certification ensures our products meet top-tier aviation standards.
Building a strong, proven foundation is key to
successful growth: We sunk deep roots in New Zealand before looking outward, investing in markets like the Americas and Africa.
Niche specialisation sells: For example, we’re one of only two facilities globally that are capable of overhauling BK 117 transmissions, the other being Airbus in Germany. International customers choose us, including many based in Europe, which underlines our reputation for reliable service delivery.
Q: How does Salus Aviation approach workforce education and development?
We have over 240 staff around the world, with about a 60/40 split between engineers and support staff. We’re in a highly regulated, safety-critical industry with strict SOP compliance and continual audits. We operate a multi-stage, role-specific induction that combines cultural alignment of our vision and values with regulatory safety training.
There’s a global shortage of aircraft engineers and New Zealand is not producing enough locally.
This has forced us to recruit experienced overhaul engineers from overseas. However, current immigration settings, including limited Green List residency pathways, create costly risks.
We continue to pursue advocacy through the Aviation Industry Association and the EMA to secure specialist roles.
To try and build capacity locally, we run an apprenticeship programme, which currently has 11 apprentices. Another key challenge is raising awareness in schools, where students often don’t realise aircraft maintenance engineering is a career path.
Q: How does Salus Aviation and the EMA work together?
Greg Edmonds: Salus Aviation regularly attends the EMA’s Member Briefings, to stay up to date with economic and legal developments and to connect with other businesses.
Our HR team also uses the EMA AdviceLine, training and downloadable resources to manage employment risks and build capability. In addition, I’m on the EMA Export Advisory Board, where industry leaders meet every six weeks to discuss market changes and share intelligence.
The EMA also brings its Members to our facilities, so they can see and hear how Kiwi heavy engineering in aviation can truly compete globally.
Q: What’s next for Salus Aviation?
Greg Edmonds: Our domestic presence is strong, but our future growth lies overseas. We’re expanding in North and South America, where aircraft leasing and maintenance demand is growing.
We’ve just placed an executive general manager on the ground in Africa to capitalise on leasing and heavy overhaul opportunities. In Europe, recent upticks in demand have us considering a presence there in the next 2–3 years.
How the EMA’s Manufacturing Safety Dashboard can help to transform workplace safety
By EMA Head of Advanced Manufacturing Jane Finlayson
In an industry where precision, productivity and performance define success, safety must never be treated as a background concern.
For manufacturers, every injury represents not just harm to a valued person but also disruption to production, increased costs and reputational risk.
Yet despite decades of progress, manufacturing remains New Zealand’s highest-harm sector.
At the Employers and Manufacturers Association (EMA) we’ve been looking at ways to assist the sector and one result was the Manufacturing Safety Dashboard, which we launched earlier this year.
It’s a dynamic online tool designed to help manufacturers understand, benchmark and reduce workplace harm.
This dashboard can be a catalyst for cultural change in manufacturing businesses. It was designed to take what has too often been a reactive approach to safety and turn it into a proactive, informed strategy for harm reduction.
Recently, I had the opportunity to present the dashboard to a group of structural steel manufacturers and distributors.
Drilling into the data revealed not only the levels of harm prevalent in their subsector but also the types of injuries occurring most frequently, and how that compares to other manufacturing subsectors. This level of visibility sparked meaningful conversations about risk mitigation, training, seasonal workforce management, and the role of leadership in fostering safer workplaces.
The Manufacturing Safety Dashboard was developed initially by WorkSafe, in partnership with ACC and data specialists at Flock, with a clear objective: to make harm data accessible and actionable.
Drawing from ACC claims data and overlaying it with
BIC (Business Industry Classification) codes, the tool provides a transparent picture of injury trends across the many subsectors that make up manufacturing. Whether a company operates in plastics, food processing, metal fabrication, or structural steel, the dashboard allows users to filter by industry, region and time period to understand patterns of harm. One of the most powerful features is its ability to compare subsectors. During the structural steel session, we explored how injury rates in steel distribution compared with other heavy manufacturing categories.
The data revealed a higher incidence of crush injuries and falls from height. That’s unsurprising given the nature of the work but still sobering when quantified. This can lead to practical discussions about PPE compliance, refresher training cycles, equipment upgrades, and even job design.
What makes the dashboard so valuable is that it shifts the conversation from compliance to asking how well we prevent these most prevalent types of harm in our business and what could we do to stop this specific type of harm from happening. Numbers, on their own, do not keep people safe. But when those numbers are presented in context, they reveal patterns of harm, missed opportunities and, crucially, where prevention will make the biggest difference.
The dashboard can provide the foundation to a comprehensive harm reduction action plan for manufacturing. For example, if a business sees a spike in repetitive strain injuries, they can access ergonomic assessment tools, job rotation models and training options. If falls are prevalent, they can access fall-prevention audits, ladder-safety modules, and PPE best practice guidelines.
Manufacturers tell us repeatedly that they want transparency and relevance. They are tired of generic averages and broad, sector-wide assumptions.
They want to know how they are really performing relative to their peers. The dashboard gives them that.
For the structural steel manufacturers we met, it validated anecdotal concerns with hard evidence, including seasonal spikes in musculoskeletal injuries during peak construction months. This knowledge means that safety planning can be timed, resourced and measured for impact.
Of course, data alone will not change a culture. The EMA’s role is to support members in translating insight into action. Alongside the dashboard, our Safety Adviceline provides immediate access to expert guidance on safety issues, compliance and best practice.
Our on-site assessments identify risks and practical opportunities for improvement. Our training, whether public or tailored in-house, builds capability across all levels of an organisation. Our events bring manufacturers together to share lessons, innovations and success stories, because learning from each other accelerates progress.
In a sector where there are specific and ongoing skills shortages, safe workplaces attract and retain skilled staff, reduce downtime and protect the reputation of both businesses and the wider sector.
If you have not yet explored the EMA’s Manufacturing Safety Dashboard, I urge you to do so. Whether you are running a small workshop with 10 staff or a large-scale distribution centre with hundreds, the data is there to guide you. It will show you where your risks sit, how you compare with your peers, and where to focus your energy for the greatest impact. You can find the dashboard here: ema.co.nz/services/ manufacturing/dashboard
Smarter manufacturing: Doing more with less, for longer
It’s encouraging to see that in New Zealand’s manufacturing sector, productivity and sustainability are increasingly recognised as connected. Steps taken to improve efficiency can reduce environmental impact, and sustainable design decisions frequently drive productivity gains.
Sustainability as a Driver of Efficiency
Across the sector, there are fresh examples of sustainability driving productivity gains.
• In the energy sector, Lodestone Energy is rolling out utility-scale solar farms across New Zealand. Their projects are about decarbonisation, but also about resilience. Renewable generation shields businesses from volatile global fuel prices and creates opportunities for local manufacturers to supply into a growing clean-tech value chain.
• In materials recovery, Zincovery is tackling zinc recycling with a process that uses far less energy and produces fewer emissions. It’s cleaner and cheaper to run, making the business more competitive.
• In cleantech, Mint Innovation is scaling its biochemical process for recovering metals from e-waste and EV batteries. By reducing the need for offshore smelting and mining, they’re strengthening supply security while lowering environmental impact.
• In green fuels, Hiringa Energy is exporting New Zealand hydrogen technology into large-scale projects, showing how renewable ammonia and hydrogen can cut emissions in agriculture and heavy transport while creating a new value chain for local manufacturing.
• In food and beverage, innovators are proving that sustainability and productivity can go hand in hand. Otis Oat Milk is localising its supply chain with Southland-grown oats to reduce import reliance and transport emissions, while Mara is extracting high-value proteins from New Zealand seeds for fast-growing global markets. Both show how sustainable initiatives can double as efficiency gains.
Practical Steps on the Factory Floor
Sustainability doesn’t have to mean radical transformation. Some of the most effective changes are small, practical engineering decisions that improve both output and footprint.
• Modular design and upgrades: Extending the life of machinery by upgrading components rather than replacing entire systems reduces downtime and avoids landfill.
• Smarter material selection: Choosing lighter or more durable materials can cut transport costs, reduce failures, and improve product performance.
• Simulation and testing tools: Virtual prototyping and finite element analysis allow teams to get designs right the first time, reducing scrap, rework, and costly redesigns late in the process. It also allows you to confidently take weight and cost out of a product and still maintain durability, longevity, and reliability.
• Process optimisation: Reconfiguring factory layouts or updating conveyors can improve throughput while lowering energy and water use.
Circular Thinking Gathers Momentum
This shift is reflected in the growing number of manufacturers engaging with the Sustainable Business Network’s Circular Economy Directory. The directory brings together organisations committed to designing out waste, improving durability, and planning for end-of-life—all principles that directly affect productivity. It’s not about perfection. Most businesses aren’t redesigning their operations overnight. Instead, they’re taking practical steps: making better material choices, designing for maintenance, or finding efficiencies that reduce waste without compromising output. In doing so, they’re discovering that circular thinking can improve margins as much as it improves environmental outcomes.
The Role of Engineers
Engineers sit at the heart of this shift. Whether part of in-house design teams, working as external consultants, or seconded into client teams to provide extra capacity, they bring the technical depth to validate designs, optimise systems, and identify blind spots before they become costly mistakes.
Because Caliber engineers work across multiple industries—food and beverage,
aerospace, energy, medtech—they’re well positioned to cross-pollinate ideas. A waste reduction strategy in one sector might inspire efficiency gains in another. A durability solution from aerospace might apply equally to food processing machinery. This transfer of knowledge is one of the hidden productivity benefits of the seconded engineering model.
Productivity Still Matters
While sustainability rightly commands attention, New Zealand manufacturers also face an urgent productivity challenge. Labour shortages, ageing equipment, and increasing global competition mean companies must deliver more with fewer resources.
Here, disciplined engineering processes pay dividends. Structured product development frameworks, robust design briefs, and consistent drawing standards reduce rework and keep projects on track. Every error avoided saves time, money, and material. Every smart design decision reduces not just carbon but cost.
Looking Forward
The convergence of productivity and sustainability isn’t a theory—it’s already happening in New Zealand workshops, factories, and R&D labs. Companies are finding that the same decisions that help them compete globally also help them tread more lightly.
For manufacturers, the opportunity is clear: treat sustainability as a productivity lever, not a constraint. For engineers, the role is equally clear: continue to bring the rigour, creativity, and cross-industry insight that make sustainable productivity possible.
New Zealand is uniquely placed to lead the world in sustainable practice. The future of our manufacturing sector will belong to those who can deliver both— products and processes that work harder, last longer, and waste less.
www.caliberdesign.co.nz
ADVISORS
Sandra Lukey
Sandra Lukey is the founder of Shine Group, a consultancy that helps science and technology companies accelerate growth. She is a keen observer of the tech sector and how new developments create opportunity for future business.
Gareth Mitchell, Associate Partner Iris by Argon & Co
Experienced executive and consultant across organisations in NZ, Australia, South America and the UK.
Business Transformation Specialist and top 50 NZ CIO having worked across multiple industries, with a focus on business improvement and digital transformation in services and manufacturing settings.
Johnathan Prince
Jonathan Prince is a Director at Caliber Design, a project-based mechanical engineering consultancy with engineers all around the country. With a background in product commercialisation, sustainable design, and business strategy, Jonathan is passionate about helping Kiwi companies turn ideas into reality and building engineering capability within New Zealand Inc.
Adam Sharman
Is CEO at LMAC for the APAC region. With a background in technology implementation, manufacturing and strategy, Adam and the team at LMAC are on a mission to transform manufacturing productivity by combining expertise in operational excellence, manufacturing digitisation and strategy definition and delivery.
Patrick McKibbin
CEO – Hutt Valley Chamber of Commerce
Patrick joined the Hutt Valley Chamber of Commerce in September 2021. His passion is identifying and connecting with manufacturing & technology businesses, other businesses, local government, central government and industry associations.
Hands free tool changes for smarter machining
Peter Pettersson, Sandvik Coromant
Imagine a factory where the lights are off, not because no one is home, but because automated systems are working around the clock to keep production lines running with minimal human intervention. These futuristic setups are quickly becoming a reality, with touchless tool changes at the core of the automated machine cell.
Unmanned machining represents a significant leap in manufacturing, where machines operate independently without the need for human supervision.
Driven by CNC technology, robotics and automation software, these systems can run continuously — in some cases, 24/7 — performing tasks such as turning, cutting, milling and drilling with high accuracy. This approach enhances productivity, reduces errors and allows for efficient, around-the-clock operation. While many view unmanned machining as a futuristic approach to manufacturing production, Sandvik Coromant began reaping its benefits back in the 1980s.
Going hands free
Some 40 years ago, Sandvik Coromant’s production site in Gimo, Sweden, used a form of automatic tool change (ATC) that facilitated the changeover of machine tools without human input. The solution was offered as a product to customers, but it didn’t prove popular.
Many could not grasp how ATC could save their machine shop time and enhance their productivity and the offering was dissolved.
Fast forward a few decades and Sandvik Coromant continued to see value where others could not. This time around, the company worked with a machine builder to develop a second ATC solution. Again, it was implemented at the Gimo production facility and continues to run across several machine cells today.
Using conventional tool management methods, a lathe could run without human input for around four-to-eight hours. After that, the tool would reach the end of its life and a human worker would need to stop what they’re doing to manually switch the tool with a new replacement.
With the ATC solution, machines can run for up to 16 hours without an operator worrying about them.
A new take on turning
After using ATC technology for several years, Sandvik Coromant has now developed a solution for its customers that enables hands-free tool changes in turning operations. The new ATC system for machine-adapted clamping units (MACU) in turning centers fully automates the tool-changing process, eliminating the need for manual intervention. This leads to higher machine utilisation and improved productivity.
So, why now? In the 1980s, the benefits of ATC were not as widely recognised. However, today, automating repetitive, time-consuming tasks is essential for creating more resilient and efficient production lines.
The immediate benefit is the time it saves human workers. Running machines for up to 16 hours — four times longer than before — without the need for operator intervention allows operators to focus
on other tasks, rather than being occupied with constant tool wear inspections.
ATC also helps optimise tool wear. When operators manually change tools while juggling multiple other tasks, they often replace tools prematurely, before they’ve reached their full potential. With ATC, tools are changed only when they’re fully worn, maximising tool life and reducing waste.
ATC also delivers significant sustainability benefits, including lower energy consumption, enhanced resource efficiency reduced waste and improved overall equipment efficiency. By keeping machines running at optimal levels, ATC minimises idle time and energy waste, increases output with fewer resources and reduces the frequency of breakdowns and downtime.
Taking a holistic approach
To create a future-proofed shop floor — whether the lights are on or off — ATC is a crucial piece of the puzzle.
In modern manufacturing, a comprehensive strategy boosts efficiency, productivity and sustainability. By optimising the entire process — from materials and equipment to environmental impact — companies can enhance operational performance.
Advanced technologies and cross-department collaboration are key to achieving these goals. This all-encompassing strategy not only elevates quality but also secures long-term success in a competitive market.
ATC forms a central part to this holistic take on machining, but Manufacturing Wellness is about more than just individual innovations; it’s about creating a seamless, resilient production ecosystem. ATC plays a key role in this broader vision, enabling factories to go beyond isolated efficiency gains to achieve true operational harmony.
By automating routine tasks like tool changes, ATC frees up human operators for more strategic roles, while ensuring machines run at peak efficiency with minimal downtime. This integration of smart automation within a larger, wellness-driven framework positions manufacturers to thrive in an increasingly competitive, resource-conscious world.
Quantum computer-based robot posture optimisation developed
Shibaura Institute of Technology (Associate Professor Takuya Otani, Faculty of System Science and Engineering [Human Robot System Laboratory]), Waseda University (Professor Atsuo Takanishi, Faculty of Science and Engineering), and Fujitsu Limited have announced the development of an innovative method for efficiently controlling robot posture using quantum computing technology.
This new approach facilitates the efficient and accurate calculation of inverse kinematics, i.e., determining joint angles from a target end-effector position, for multi-joint robots by leveraging qubit-based position representation and quantum entanglement.
Verification using Fujitsu’s quantum simulator achieved up to a 43% error reduction with fewer calculations compared to conventional methods. The effectiveness of quantum entanglement was also confirmed through an experiment carried out on the 64-qubit quantum computer jointly developed by RIKEN and Fujitsu.
By expressing the orientation and position of each robot link as a qubit, and by replicating the structural influence of parent joint movements on child joints through quantum entanglement, the number of necessary calculations was significantly reduced compared to conventional classical methods. As quantum computing advances towards practical application, this development is expected to contribute substantially to the creation of next-generation robots that demand real-time control and complex operational capabilities.
Quantum technology breakthrough for complex robot posture calculation
In robot posture control, calculating inverse kinematics is crucial. For robots with multiple joints, the possible angle combinations are numerous, requiring iterative calculations to minimize the
Solid Parts
Sheetmetal Parts
Assemblies
BOM
PDM
2D Drawings
Secons
Developments
Exploded views
Export files for CNC
30-day free trial available
discrepancy from the target position and resulting in a high computational load.
For a full-body multi-joint model with 17 joints, equivalent to the number of joints in the human body, the number of possible calculations required are too vast to be solved directly. A common approach has been to perform motion calculations with an approximated 7 joints, but this limits the smoothness of movement.
In this research, a new method leveraging the power of quantum computing has been proposed to address these challenges.
The orientation and position of each robot part (link) are represented by qubits, and forward kinematics, i.e., calculation of end-effector position from joint angles, is carried out using quantum circuits.
Inverse kinematics calculations are performed on classical computers, achieving efficient posture control through a hybrid quantum-classical approach.
Improved convergence speed and accuracy with quantum entanglement
Furthermore, by introducing quantum entanglement,
Alibre Design CAD
3D Design Solid Modelling Soware Powerful, easy-to-learn and use.
Buy it and own it, no subscripon or cloud. Most cost affecve 3D CAD program to own.
the structure where the movement of parent joints naturally influences child joints is reproduced on the quantum circuit. This significantly improved the convergence speed and accuracy of inverse kinematics calculations.
In addition, a trial calculation showed that motion calculations for a full-body multi-joint model with 17 joints can be executed in approximately 30 minutes.
Expected applications in humanoid and multi-joint robots
This method can express the posture of multi-joint robots with a small number of qubits, making it implementable even in current noise intermediate-scale quantum (NISQ) computers.
In the future, this technology could be applied to real-time control of humanoid robots and multi-joint manipulators, obstacle avoidance, and energy optimization. Further performance improvements are also anticipated through combination with advanced quantum algorithms such as quantum Fourier transform.
with 3D Printer
3D Printer + Discounted Alibre Design bundle offer. Design and print prototypes and producon parts.
Largest selecon of 3D Printers and materials for Hobbies and Commercial Producon
Rockwell Automation Report finds CPG Industry prioritising innovation over costcutting
Research shows CPG leaders are investing in AI and talent to stay competitive Rockwell Automation has announced the results of the 10th annual State of Smart Manufacturing Report: Consumer Packaged Goods (CPG) Edition. The findings highlight how manufacturers are placing greater importance on innovation, workforce development, and long-term growth strategies.
The CPG industry is facing pressure on multiple fronts, from the growth of store brands to the demand for faster innovation and more sustainable products. At the same time, consumer loyalty is harder to earn, and expectations for customisation and transparency are rising.
In response to this, CPG companies are moving away from small-scale technology pilots and investing in solutions that deliver measurable results across the organisation.
The combination of workforce training, better use of data, and more adaptable systems is helping these manufacturers stay competitive while managing complexity.
And as private-label brands expand and consumer expectations evolve, CPG leaders are prioritising investments that help them compete more effectively in a crowded and fast-changing market.
Notable Key Trends from 2024 to 2025:
Rising Competition Leads Industry Concerns:
In 2024, economic uncertainty and inflation were main challenges noted in our annual survey. In 2025, competition has taken the lead, driven by increased
NZ MANUFACTURER
OCTOBER 2025 Issue
market pressure from private-label products and changing consumer buying habits.
Technology Needs to Work for People: Companies are focusing less on simply adopting new tools and more on making sure new technology fits their teams and operations. Usability and scalability are now critical factors in technological decisions.
Capabilities CPG leaders are looking for in their workforce include communications/teamwork (86%), adaptability/flexibility (85%), while analytical thinking and cybersecurity practices are tied (84%).
AI and Robotics Lead Investment Priorities:
At the heart of technology investment decisions is a shift in thinking. 70% of CPG manufacturers say they are investing in AI, robotics, and simulation technologies for long-term business growth.
This is a shift from last year when technology supported more sales analytics and process optimisation.
More companies are using data effectively
The number of manufacturers who say they are using their data to guide decision-making is up from 40% in 2024 to 44% in 2025.
AI is playing a growing role in data utilisation in key areas like quality control, logistics, and cybersecurity, scoring 5% above the general average.
Workforce strategies are evolving
While 2024 emphasised attracting skilled labour, the 2025 report shows 34% of manufacturers are concentrating more on training current employees
Move welcomed
The Auckland Business Chamber and Auckland Tech Council welcome the announcement that the Government will base the New Zealand Institute for Advanced Technology in Auckland – a move that follows clear calls from the business community to supercharge the city’s tech future.
on updated processes, while 33% of the focus is on managing change effectively and improving employee retention.
“CPG manufacturers are no longer just reacting to disruption – they’re proactively investing in technologies that deliver sustainable growth and competitive advantage,” said Steve Deitzer, vice president, Global Industry, CPG, Rockwell Automation.
“This year’s report shows a clear pivot toward long-term thinking, where AI, automation, and workforce enablement are central to success.”
Scalability and integration are now central to how CPG leaders approach growth. By aligning technology, people and processes, companies are working to build more agile and efficient operations that can keep up with market changes.
The 2025 State of Smart Manufacturing Report, based on insights from 174 CPG leaders across 15 countries, is part of Rockwell Automation’s broader global research initiative surveying over 1,500 manufacturing decision-makers. The full findings of the report can be found here
commercialisation — with the scale and connectivity to anchor a nationally significant tech hub.
While the Institute will initially be incubated within the Ministry of Business, Innovation and Employment, the announcement confirms that Auckland will be its central base.
The Chamber and Tech Council had earlier identified Auckland’s Newmarket innovation precinct as the natural home for cutting-edge research and
The city is uniquely positioned to connect research, business, and investment. With world-leading AI and quantum researchers already based at the University of Auckland, Auckland can serve as a critical link between academia, startups, and global partners.
The Chamber’s recent tech report, developed in partnership with leading businesses and institutions, laid out a clear roadmap – calling for major investment, a regulatory sandbox for MedTech, and urgent action to close the capital and skills gaps.
Advertising Booking Deadline – 3 October 2025
Advertising Copy Deadline – 3 October 2025
Editorial Copy Deadline – 3 October 2025
Media Hawkes Bay Limited 027 348 1234
Articles to be sent to: publisher@xtra.co.nz www.nzmanufacturer.co.nz SUPPLY
New alliance with Auckland’s CNC Machining Co. Ltd. strengthens space-sector supply chain and improves quality.
Advertising – For bookings and further informa
StardustMe, the Kiwi company turning ashes into orbital shooting stars, will now machine every aluminium component for its memorial space capsules in Auckland rather than China. Partnering with CNC Machining Co. Ltd. brings production under one roof near StardustMe’s Auckland base, cutting freight costs and shortening lead-times.
“High quality of fit and finish is non-negotiable when a family’s memories are heading to orbit,” said Geoff Lamb, Technical Director of StardustMe. “Working locally keeps us in touch in real time and keeps high-value manufacturing in New Zealand.”
Capsules produced in Papakura will fly on StardustMe’s third flight, scheduled for October this year.
CNC’s ISO-9001 facility houses 5-axis mills, multi-axis lathes and robotic loading cells, enabling lights-out runs of the laser-engraved capsule housings.
Awards show industry embracing sustainability
From ditching polystyrene to on-demand 3D printing, the packaging industry is not only embracing sustainability but leading it, according to Foodtech Packtech & MHL expo event manager Deb Haimes.
The 2025 trade event launched the inaugural Sustainability Spotlight Awards to celebrate innovative technologies and service solutions.
The winners highlighted the way forward in industrial sustainability, with benefits for not just businesses, but the New Zealand environment overall, says Haimes.
The winners in the four categories are:
Energy and Resource Efficiency in Manufacturing
Winner: RORI (Return on Roof Investment) by Endless Energy – K08
A commercial solar rooftop model optimising unused roof space and exporting energy directing to the grid without tenant dependency. With no capital or operational costs for building owners, the model partners with Calder Stewart and Ecotricity to solve key barriers to commercial solar including capital risk and consumption limitations.
Sustainable Packaging Innovation
Winner: Visycell by Visy
A fibre-based thermal insulation liner to move industry away from expanded polystyrene.
Made from cardboard waste, it’s fully recyclable and as it can be flat-packed, saves on transport costs and emissions. With 77 % of EPS in the current supply chain going into landfill it has been earmarked as a plastic in need of phasing out.
Visycell has strong thermal and cushioning qualities and has undergone extensive testing.
Circular Economy and Waste Reduction
Winner: Capital Asset Recovery Solutions (CARS) by Proquip Solutions
Recycling surplus or end-of-life industrial equipment via strategic resale, recycling and reuse. Using circular economy methodology CARS repositions former liabilities as opportunities for value creation, carbon reduction and industry collaboration. It’s environmental responsibility meeting operational efficiency.
Smart and Clean Technology Solutions
Winner: Additive Manufacturing, 3D printing by Invenio 3D Pty Ltd
Foodsafe industrial 3D printing has taken a leap forward with the Markforged FX10, which enables on-demand printing with materials certified for food contact.
While offering significant benefits to manufacturers in efficiency, it also helps to achieve sustainability goals by reducing material waste, eliminating transport emissions and cutting down on stock excess and waste.
People’s Choice Award, as voted by visitors to Foodtech Packtech & the MHL Expo
Winner: Rewrapt by StretchWrap Ltd
Rewrapt is redefining sustainability with the future of pallet wrap, made from 100% recycled content. While businesses are striving to reduce plastic use for greater sustainability, pallet wrap remains a necessity.
StretchWrap supports its customers in reducing, reusing, and recycling the plastic wraps they use—and now, they’re taking it a step further. We’re proud to introduce Rewrapt, an innovative, high-performance pallet wrap made entirely from recycled plastic.
The Sustainability Spotlight Awards were judged by four industry experts: Nicky Solomon from the Food Innovation Network, Nerida Kelton of the Australasian Institute of Packaging and World Packaging Organisation, Lyn Mayes from the Packaging Forum, and Allan Birch of Tadpole.
The judges were encouraged by the quantity and quality of the entries. From over 50 entries, 33 finalists were selected across the four categories. A spokesperson for the awards, Haimes, said the entries showed sustainability was “not just a buzzword.”
The high level of entries showed a shared sense of responsibility when it came to environmental concerns.
“These awards will continue to foster the crucial collaboration needed to drive innovative change,” said Haimes. “It is more important than ever to showcase what best practice looks like - from reducing waste to developing eco-friendly alternatives and more efficient technology. We’re excited to see how the innovation and awards evolve for 2027.”
Building resilience through age-inclusive practices in New Zealand manufacturing
By Shyamini Szeko, reflecting
on Master’s research into ageing and work in New Zealand manufacturing (AcademyEx, 2025)
When I began my Master’s research into age-inclusive practices in New Zealand manufacturing, I thought I was studying a “future of work” issue.
What I quickly realised was that it is also a very human story, one about resilience, knowledge, and how we value people at different stages of their working lives.
New Zealand’s workforce is changing fast. By 2033, nearly half (44%) of workers will be over 45, with 8.6% aged 65 and older (MBIE, 2023). We also stand out globally for how many older people remain in the workforce.
Overall, about one in four New Zealanders aged 65 and over are still working, and for those aged 65 to 69, it is close to half (Te Ara Ahunga Ora, 2023). This is an extraordinary contribution, but also a challenge if workplaces do not adapt.
What the research revealed
Through conversations with older workers, younger colleagues, industry leaders, and cultural advisors, five themes became clear:
1. Flexibility matters, but it is uneven
Office-based employees often have access to flexibility, while factory workers rarely do. Yet small changes, such as a shorter week or a different shift pattern, can keep people engaged and thriving.
2. Knowledge transfer is fragile
Long-serving employees carry decades of know-how, often undocumented. Without structured mentoring, this experience is easily lost.
3. Digital change can feel out of reach
Many older workers lack confidence with technology and want safe, supportive ways to learn. Younger employees are often keen to help but need structured opportunities.
4. Age is overlooked in inclusion
While gender and ethnicity are visible priorities, age rarely makes the list. This gap leaves older workers feeling undervalued. Ageism is also evident in recruitment.
Many people over 50 report being overlooked
for roles, despite having the skills, stability, and experience that businesses need.
5. Health, wellbeing, and transitions are central
• Physical strain and financial pressures shorten careers, with many workers leaving earlier than they want to, driven by fatigue or injuries.
• Others do not know how to leave. Without clear pathways, some remain caught between cultural expectations, financial fears, and silence around transitions.
• Structured transition planning makes the difference. Reframed not as “retirement” but as open conversations about what is next, these approaches support dignity, choice, and continued contribution.
Making “what’s next” part of the conversation
What struck me most was how rarely people feel able to talk about what is next, even though many want to keep contributing in new ways such as mentoring, reducing hours, or trying different roles.
Often, people also do not know how to start these conversations, or that they may even have options available to them. As a result, the discussions never happen.
Leaders sometimes fear raising the topic will be seen as pushing people out. Creating space for open dialogue is an act of respect. It shows that work is not ending but moving into a new stage.
Culture and belonging
Cultural intelligence reshaped my thinking. Te Tiriti o Waitangi challenges us to design workplaces that reflect partnership, participation, and protection. For Maori, kaumatua are more than “older workers”, they are knowledge-holders. For Pasifika, wellbeing and contribution are understood through whanau and community.
Respecting these perspectives means moving beyond inclusion to a deeper sense of belonging.
Where to start
You do not need to wait for perfect policy to begin. Even small steps can shift culture:
• Create space for conversations about “what’s next”. Normalise open dialogue with older workers about their future pathways, without assumptions.
• Trial reciprocal mentoring. Pair long-serving staff with newer colleagues so knowledge and digital skills flow both ways.
• Offer bite-sized digital training. Short, hands-on sessions build confidence and inclusion more effectively than one-off courses.
These are simple places to start. My research shows that when they are embedded systematically, supported by leadership, cultural intelligence, and structured planning, they can transform both workforce resilience and business outcomes.
A reflection
The lesson I carry from this research is simple: organisational resilience is not built in the boardroom alone. It lives in everyday choices about how we value people.
Ageing workers are not a burden to be managed. They are a resource of experience, loyalty, and perspective that, if supported, can help our sector thrive.
If we start treating ageing not as an end point but as the next stage of contribution, New Zealand manufacturing will not just cope with change, it will build resilience and lead through it.
Supporting manufactureres to succeed
by Hon Chris Penk, Minister for Small Business andManufacturing
While the Government has been setting out a pro-growth agenda, a question I often hear when I visit manufacturers or speak to business audiences is: what support is available for firms that want to expand and contribute to a stronger economy?
For those who haven’t come across it yet, I want to highlight the Regional Business Partner (RBP) Network. This nationwide programme, delivered in partnership with business chambers, economic development agencies and the national provider Poutama Trust, offers practical, tailored support to help small businesses grow.
The past financial year has been one of the strongest yet for the RBP Network. Nearly 4,500 businesses engaged with the programme, which is the highest number outside the COVID-19 response. That’s a seven per cent increase on the previous year, and 13 per cent higher than in 2022/23.
This growing uptake tells us that business owners value the advice and connections on offer, and that word-of-mouth recommendations are carrying real weight.
One example of what this support can achieve is Coastwood Furniture, a long-established manufacturer in Greymouth. Known for solid timber furniture designed for both retail and commercial clients, Coastwood has been in business for more than 25 years.
Like many regional firms, it faces challenges: rising operating costs, softening retail demand, and limited access to experienced leadership talent. Within the company, some staff had stepped into
management roles without formal training. Across its retail network, staff were not always equipped to present Coastwood products consistently.
With support from Development West Coast through the RBP programme, Coastwood put targeted training in place. This included leadership development workshops, advanced health and safety training, and a “train the trainer” sales initiative to help retail partners around the country.
The impact has been clear. Leaders now have greater confidence and clarity, team communication has improved, and decision-making is more consistent. Retail partners are better supported, so Coastwood products are being presented more effectively nationwide.
While financial results take time to measure, early signs point to stronger engagement with retailers, improved visibility, and tangible gains in team performance and customer experience.
Coastwood’s experience underlines the difference that investing in people can make. By developing leadership and sales skills, the company has tackled immediate challenges and laid stronger foundations for long-term success.
Alongside direct business support, MBIE has been preparing advisors and mentors for the future. In partnership with Business Mentors New Zealand,
training has been rolled out to Growth Advisors and Business Mentors to help them guide businesses on how to make practical use of artificial intelligence. The aim is to equip mentors with the knowledge to identify opportunities so that businesses can start adopting AI without needing large budgets or specialist teams.
We have also boosted funding for Business Mentors New Zealand by $350,000. This will enable up to 750 additional businesses to access mentoring as the programme scales up over the next two years. It ensures these services grow alongside demand and remain available where they are needed most.
For manufacturers and other small businesses, we want you to know support is available. Whether the goal is to build leadership capability, upskill staff, or explore new technologies, the Regional Business Partner Network and Business Mentors New Zealand offer trusted pathways for practical help. Looking for a marketing edge? 70% of licence holders say
Eight reasons why how you communicate sustainability matters
By Jule Scherer, thinkstep ANZ
How you talk about your business’s sustainability efforts can make or break your reputation. Communicating poorly, or not at all, risks damaging your reputation, losing customer trust, or even being accused of greenwashing.
On the other hand, clear and credible communication can win you new business, strengthen stakeholder loyalty and attract and retain skilled employees. Done well, it turns sustainability from a compliance exercise into a competitive advantage and helps the whole industry to move ahead.
What is sustainability communication?
Sustainability communication goes far beyond formal reporting or meeting compliance. It shapes your brand and influences how people see your business. It can take many forms: from conversations with customers, to updates on social media, to the claims you make in packaging and tender documents. Whatever the channel, the foundation must always be solid data and evidence. At thinkstep-anz, we keep emphasising this because credible communication builds trust and gives your business a real edge.
Here are eight reasons why getting communication right matters and how it can strengthen your business.
1. It drives better business performance
Good communication can give you a competitive edge. When you clearly explain your sustainability goals and progress, you demonstrate leadership and differentiate your business from others in the market.
Whether you’re exporting high-value food products or supplying components for infrastructure, clear and credible communication signals to your buyers that your business is future-focused and resilient. For manufacturers, this may mean explaining how you’re reducing emissions across your operations or sourcing more sustainable raw materials. The clearer you are, the more confidence you build in your brand.
2. It builds stakeholder support Manufacturers rarely act alone. You rely on suppliers, logistics partners, distributors, customers and employees to achieve your goals. Communicating your sustainability strategy in plain English – and showing why it matters – helps these stakeholders come on board.
For example, when you start sharing the emissions of your supply chain (your scope 3 emissions), you invite
continued from Page 1
suppliers to innovate with you and customers to understand how their choices matter. This two-way conversation strengthens collaboration across your value chain.
3. It strengthens trust and reputation
Trust is hard won and easily lost. Transparent communication about sustainability builds credibility with your stakeholders. That means celebrating achievements but also being honest about challenges.
Customers and investors are alert to “greenwash” –vague or exaggerated claims about environmental performance. Clear, evidence-based communication reassures them that your claims can be trusted. For New Zealand manufacturers competing in export markets, reputation is critical. A trusted sustainability story can become part of your value proposition.
4. It helps you manage risk
Sustainability reporting and communication aren’t just about promotion. They’re also powerful tools for risk management. By gathering data, clarifying your strategy and reporting openly, you identify where your business is most exposed. This might be changing regulations, resource scarcity or shifting customer expectations.
Sharing this information with your stakeholders also shows that you’re managing risks responsibly. This is particularly important with increasing global reporting standards.
5. It motivates your people
Sustainability communication isn’t only external. Your employees also want to know what you’re doing, why it matters and how they can contribute. When you share your goals clearly, you give your teams a sense of purpose and pride.
For manufacturers, this can make a real difference in retention and recruitment. Younger generations, in particular, want to work for companies that act responsibly.
When you celebrate sustainability milestones internally, from waste reductions on the shop floor to energy savings in production, you give your teams a reason to be proud of their work.
6. It helps you avoid greenwashing – and greenhushing
Getting communication right reduces the risk of greenwashing. Make sure your claims are trustworthy by being accurate, backing up your statements with data and evidence, keeping language simple and being open about your journey.
At the same time, don’t fall into the trap of “greenhushing” - staying silent for fear of criticism. If you’re taking genuine steps forward, communicate
them transparently. Sharing both achievements and challenges shows leadership and helps lift industry standards.
7. It clarifies your strategy and holds you accountable Committing your sustainability strategy to paper makes it more coherent and actionable. Once it’s shared with your team and your stakeholders, it’s not just words on a page. You’ve made a commitment. For manufacturers, this accountability matters. It means your suppliers, customers and investors know what to expect and can measure your progress. It also disciplines you internally: goals are more likely to be met when they are visible and shared.
8. It positions you as a leader in your sector
Manufacturers who communicate their sustainability work openly and consistently can shape the future of their industries. By aligning with recognised reporting frameworks such as GRI or Aotearoa New Zealand’s Climate Standards, you show you’re serious about leading the conversation.
Sharing your progress and challenges can also influence peers and partners. In competitive manufacturing sectors, being seen as a sustainability leader helps attract business, investment and top talent.
Bringing it all together
Sustainability is not an add-on to your manufacturing business, It’s integral to strategy, risk management and brand. Start with the basics: identify the sustainability issues that matter most to your business, set clear communication goals and be transparent about where you are today. Use simple, plain language and share your story regularly. Over time, good communication will not only showcase your own efforts. It can help you create the very impact you’re aiming for: stronger businesses, healthier communities and a more sustainable New Zealand manufacturing sector.
This article is based on a guide we wrote with the Sustainable Business Council and Kaitiaki Collective. SBC’s guides support anyone driving sustainability in business, from sustainability specialists to people and culture teams, procurement leads and risk managers. Recent guides, grounded in te ao Maori, cover environmental, social and governance topics to help businesses make meaningful progress.
Building a competitive future: The role of Government in NZ Manufacturing
moving to the Ministry of Business, Innovation and Employment (MBIE).
Popular schemes such as the rohia Evidence Grant, New to R&D Grant, R&D Tax Incentive (RDTI), and student grants continue to exist.
Notably, the Callaghan Innovation Biotech team is being integrated into the Bioeconomy Science Institute, a collaboration with AgResearch, Landcare Research, Plant & Food, and Scion.
However, the applied sciences teams at Callaghan Innovation have been disbanded.
EECA (Energy Efficiency and Conservation Authority)
EECA provides industry-specific support focused on improving energy efficiency, sustainability, and lowering operational costs.
New Zealand Trade and Enterprise (NZTE)
If you are entering the export marketplace, you are
likely aware of NZTE’s strengths. Their services range from online upskilling resources to personalised support from customer managers with expertise on target export countries.
My challenge to all manufacturers is to pick one or two of the entities mentioned above and reach out to them this month. Find out what they do and how they might help free up your time so you can focus on working on your business, not just in your business.
Huski wine cooler exports surge during record US heatwave
A Kiwi company that began as a start-up in a Taranaki farm shed less than a decade ago is now seeing its multi-million dollar exports of its world-first wine cooler technology surge as temperatures hit record highs across the Northern Hemisphere.
Huski, a homegrown brand behind a world-first ice-free champagne cooler, has reached the number-one seller position in its category on Amazon across the US, UK, Australia and Canada.
The company is on track to double its eight-figure annual revenue this year, with sales spiking as countries around the world grapple with record-breaking heat.
Extreme heat across Europe and the US this summer has shattered temperature records. Spain set a new national high for June, reaching 46°C, while Portugal recorded 46.6°C in Mora, its hottest June day ever.
France also experienced its hottest June day since records began in 1947, and England marked its hottest June on record.
In the US, cities across the West and South, including Phoenix, Las Vegas and Houston, have faced prolonged heat waves, with temperatures soaring well above 40°C for consecutive days and breaking historical records.
Almost a million Huski beer and wine coolers have been exported to over 50 countries, including Germany, Japan and the UAE, and the company recently secured a single commercial export order to the UK for 76,000 units - its largest to date.
What began with a prototype cobbled together from PVC pipe in a shed is now a patent-pending product range found in over 500 retail stores across New Zealand, Australia, Japan and the US, and featured by major international outlets including Rolling Stone, Vogue, GQ, and Oprah’s Favorite Things lifestyle site.
Simon Huesser, Huski Co-founder, says that since Champagne was first created in the 1600s, there has been virtually no advancement in how it’s kept cold on the go, with the traditional ice bucket remaining the default for centuries.
He says their technology works by using double-walled vacuum insulation to keep beverages cold for hours without the need for ice, solving a common problem faced by wine and beer drinkers who experience warm drinks before the bottle or can is finished.
“Sparkling wines like Champagne and Prosecco are particularly sensitive to temperature and experts recommend serving them between 6°C and 10°C to preserve both flavour and carbonation.
“Once opened, the carbon dioxide that creates bubbles begins to escape rapidly, especially as the wine warms. Our Champagne cooler not only maintains the ideal temperature range for up to six hours without ice, it also features the patent-pending
BubbleLock Bottle Stopper, which helps slow the loss of effervescence and extend the drinking experience. We believe it’s a world-first feature,” he says.
Huesser says the idea for Huski came from the realisation that while insulated beer coolers were available in the US, the can and bottle sizes in New Zealand were different from those in most other countries.
“US beer cans are 355ml, Australia’s are typically 375ml and New Zealand is predominantly 330mlwith a mix of other formats.
“The realisation that there was no one-size-fits-all solution across markets led us to develop a more universal product range. That’s when we saw real potential, and why we started collecting bottles and cans from recycling bins to get the sizing right,” he says.
Huesser says their original beer cooler built a strong consumer following for its ability to keep drinks ice-cold without mess or condensation.
He says as demand grew, customers began asking for a version that worked for wine and bubbly bottles and they responded by developing specific products to answer that market demand.
“Designing for sparkling wine came with a new set of challenges. The bottles are larger, the shapes more varied, and the drink itself, with its effervescence and sense of occasion, demanded something more than a simple size upgrade.
“We focused on the full experience, not just keeping bubbly cold. That meant researching bottle variations, testing with real users, and thinking about how every detail, including the packaging, could enhance both performance and perception.”
Huesser says their solution was a vacuum-insulated stainless steel cooler with a removable stopper integrated into the base, designed to keep sparkling wine at its ideal serving temperature.
He says the patent-pending integrated bottle stopper
slows the loss of carbonation, helping Champagne, Prosecco and other sparkling wines stay bubbly for longer, solving one of the biggest frustrations for wine lovers worldwide.
“The solution isn’t complicated but it’s thoughtful and as the stopper lives in the base of the cooler, it’s always on hand when you need it, not lost in a drawer somewhere.”
Huesser says the Champagne cooler’s unique design helped capture the attention of one of the world’s most respected design institutions.
“The Red Dot Design Award is one of the most prestigious design competitions globally.
“Winning the 2025 Award has been a career highlight. It means being recognised by more than 40 international experts for innovation, functionality and aesthetic appeal. It puts us in the company of brands like Apple, Dyson and Ferrari,” he says.
Huesser says the growing popularity of Huski’s products has brought significant growth, but also new challenges, particularly around intellectual property.
“As a design-led business, we have had to be proactive about IP protection from day one.
“We now run monthly sweeps to identify copycat products and have successfully taken down hundreds of infringing listings. It is not just about stopping imitators, it is about safeguarding the value of the research, testing, and design work we have invested in,” he says.
Huesser says that focus has paid off in unexpected ways.
“In one case, we intercepted a shipment of 15,000 design-infringing wine coolers en route to customers in Australia. After a friendly chat with the importer, it eventually resulted in a significantly larger legitimate commercial order,” he says.
Huesser says their direct-to-consumer model has proven highly scalable.
“We typically enter new markets through Amazon, then expand through our direct-to-consumer e-Commerce websites, retail partnerships and loyalty programmes.
“This approach has driven significant growth in markets like Australia and the UK, where sales have more than doubled in the past 12 months alone.
“We have grown from selling to friends and family in New Zealand to exporting over 1.5 million products worldwide.
“More than three-quarters of our business now comes from overseas, and that growth is continuing,” he says.
huski.co.nz
AI is peeling back the layers of ‘low-value’ work
Kenny Ching, Senior Lecturer, Business School, University of Auckland, Waipapa Taumata
As generative artificial intelligence (AI) advances at breakneck speed, it is upending assumptions about which jobs are “safe” from automation.
Disruption now extends well beyond manual or routine work into white-collar roles once considered untouchable. Tools such as ChatGPT, Claude and Midjourney can produce policy briefs, analytical reports, software code, design assets and marketing copy in seconds.
Even in specialised domains, systems such as PolicyPulse can generate structured briefs and thematic syntheses – tasks that once required teams of experts.
If AI can so easily replicate large swaths of professional output, how much of the economy rests on work that creates the appearance of value rather than tangible impact?
And could New Zealand – anchored in sectors rooted in physical work, human judgement and essential services – be structurally better placed to thrive?
AI’s exposure effect
A 2023 Goldman Sachs report estimated generative AI could automate work equivalent to 300 million full-time jobs globally. The highest exposure is in administrative, legal and other information-heavy sectors.
In 2024, the International Monetary Fund warned that economies reliant on high-skilled services – such as education, law and finance – face both job losses and rising inequality.
This echoes author David Graeber’s concept of “bullshit jobs” – roles that add little genuine value. Between 2000 and 2018, most net job growth came from low productivity service sectors such as marketing, consulting and corporate administration. These are precisely the kinds of tasks AI can now perform in seconds.
The OECD has noted routine information processing jobs face the greatest risk. AI is not only replacing roles – it is revealing how insubstantial many of them were.
Some argue finance illustrates this reality starkly: intended to allocate capital efficiently, the sector has expanded beyond its productive purpose.
Businessman Adair Turner famously called much of it “socially useless”, while research from the Bank for International Settlements found oversized financial sectors can stifle innovation by diverting talent from more productive areas.
Now, AI is automating functions such as risk modelling, compliance and equity research, prompting a reassessment of the sector’s true economic value.
New Zealand’s real-economy advantage
New Zealand – often caricatured as a remote, agrarian outpost – may be structurally insulated from the worst of the AI shock. Roughly 70% of its exports come from agriculture, horticulture, seafood and forestry.
Domestically, leading employment sectors include aged care, physiotherapy, plumbing, childcare and early childhood education. These roles require physical dexterity, sensory judgement and human empathy – skills AI cannot yet credibly replicate.
In an era when many advanced economies are over-invested in finance, bureaucracy and “bullshit jobs”, New Zealand’s focus on tangible, value-producing work could be a strategic strength.
Innovation in these sectors is happening too. Robotic milking systems have improved dairy efficiency and animal welfare, biosecurity monitoring safeguards exports, and forestry research is targeting carbon neutral timber.
If finance reveals how AI strips away illusions, higher education shows its disruptive power. Generative AI can now produce essays credible enough to pass as human work.
The humanities tend to reward theoretical fluency and stylistic polish – areas where AI excels. By contrast, science, technology, engineering and mathematics – the so-called STEM subjects – demand precision, formal logic and testable hypotheses,
which are harder for AI to mimic.
OECD data has shown STEM-related occupations face the lowest automation risk.
New Zealand’s recent investment in STEM education is timely. But it must be matched by support for primary and secondary teachers – roles grounded in mentorship and adaptive instruction, which remain beyond AI’s reach.
A global pivot
Service-heavy economies such as Singapore, Britain and parts of the United States face growing pressure to adapt.
Researchers warn that reliance on low-productivity, routine service work risks long-term stagnation unless economies pivot to innovation-led sectors.
New Zealand’s base in agriculture, manufacturing, trades and essential services offers comparative resilience – but only if reinforced by investment in measurable innovation and productivity.
New Zealand’s advantage lies not in chasing abstract, easily automated work, but in deepening its strengths in sectors AI cannot yet touch – food production, care and infrastructure.
These are industries where value is measured in what is grown, built, repaired and cared for – not in presentation slides.
As AI redraws the contours of global labour markets, every country must ask: if a job can be done by an algorithm, was it ever as significant as we believed? For New Zealand, the answer may be to double down on the work that cannot be coded – turning what once looked like a structural constraint into a defining strength.
Caring for your bearings – 24/7 technology opens the way to safer, cleaner, and more
Common causes of premature bearing wear and failure include poor bearing choices for the task at hand, incorrect mounting, misalignment, contamination, and irregular lubrication leading to vibration and fatigue.
Visible early warning signs of wear or failure occurring or about to occur include excessive noise, increasing vibration, increased temperature, and damage on the bearing surface.
The costs of premature wear and failure – and of not acting to monitor and prevent it – can be very high, including physical hazards to people charged with rectifying the damage entailed in urgent unplanned repairs and maintenance, often in confined spaces.
The high financial costs of unexpected maintenance or performance failure flow through into production delays, downtime, missed deliveries and budgetary and reputational impact, if predictable problems are not pre-empted in the wide spectrum of rotating machinery involved.
Such rotating machinery encompasses virtually everything vital to production processes, including pumps, motors, drives, fans, heating and cooling equipment, materials and fluid handling plant, conveyor, and packaging lines used in industries spanning manufacturing, food and beverage, and other activities, such as electronics, where cleanliness is crucial.
When one of these vital links in the production chain breaks down, this primary failure can also lead to secondary damage to other equipment further upstream and downstream in the process.
Failures and damage can multiply, in the worst cases leading to environmental damage, such as oil leaks, chemical spills, plus land and water fouling requiring costly remediation.
“The issue is very broad in Australia and New Zealand because of the huge spectrum of rotating machinery involved at the core of manufacturing and processing,” says Schaeffler Australia Lifetime Solutions Manager, Mark Ciechanowicz.
“Foreseeable problems arise because of poor product quality and unsuitable product selection in the first place,” says Mark. Schaeffler is not only a champion of cost-efficient high quality technology, but one of the very few, if any, global companies in Australasia
durable performance
to back its product and technology with dedicated specifying and technical services in house, drawing on local knowledge to complement the resources of the global Schaeffler bearing manufacturing and maintenance leader with around 120,000 employees and more than 250 locations in 55 countries.
“No matter how high the quality of the product specified, however, all mechanical products can eventually wear out. So monitoring, predicting, and controlling situations in which wear can occur is crucial in terms of pre-empting damage,” says Mark. This pre-emptive process is held back by outdated beliefs that condition monitoring is expensive. Which is why up to 95% of all machines inside factories are only sporadically monitored – or often not at all.
“Actually, the opposite is more accurate, because condition monitoring has progressed in leaps and bounds in recent years,” says Mark, whose Lifetime Solutions role puts him at the leading edge of technologies designed to prevent problems before they arise, while optimising the lifespan and safety of machinery.
to use for operators ranging from beginners to experienced personnel
The tools at Schaeffler’s disposal are founded on decades as a global leader in bearing manufacture, integrated and automated vibration and heat detection systems from one of the world’s largest family-owned companies and one of Germany’s most innovative companies
One of the outstanding resources is the plug-and-play lubrication functionality of the OPTIME Ecosystem condition monitoring system, which is engineered to be easy to install, set up, and quickly integrate with multiple machines.
bearing quality and poor bearing specification choices for particular applications can turn production investment into scrap. Picture shows how global industrial and automotive supplier Schaeffler takes regular and consistent action against counterfeit products, including destroying, melting down and recycling around 30,000 counterfeits weighing a total of 10 tons, in one demonstration of its determination to advance quality, reliability, and safety
The OPTIME Ecosystem – which has won numerous European and US awards, including IOT and Industry 4.0 categories, plus an international Red Dot Design Award – is a condition monitoring system engineered by Schaeffler to transform the landscape of industrial maintenance across multiple sectors, including manufacturing, food and beverage production, packaging and processing, and materials handling.
“Primarily targeting rotating machinery, it functions effortlessly across a diverse range of speeds, from 120 to 5000 rpm, and is also suitable for hazardous environments. The system’s foundation lies in its wireless, battery-operated sensors that are
continued on next page
The intuitive OPTIME mobile app with award-winning product design makes it easy
Counterfeit bearings being scrapped by Schaffler. Poor
remarkably easy to install. After the installation, the data collected by wireless OPTIME sensors is transmitted to a digital service via a gateway. This setup enables continuous monitoring and early detection of potential machine issues, thereby preventing costly unplanned downtimes,” says Mark.
Intuitive design
A distinguishing feature of the OPTIME Ecosystem is its user-centric design, which makes it accessible to a wide range of users, from beginners to maintenance experts. Its affordability further enhances its appeal, breaking traditional cost barriers associated with advanced monitoring systems.
Features of Schaeffler’s OPTIME Ecosystem include:
• All the benefits of automatic lubrication with award-winning smart technology. The truly intelligent OPTIME system eliminates tasks such as lubricating by hand or having to manually check on many lubrication points.
• Simple installation and a quick return on investment for entire plants and production facilities. Plug-and-play functionality makes it easy to install, set up, and integrate with hundreds of machines very quickly.
• User-friendliness, featuring an intuitive mobile app that makes it easy to use by operators ranging from beginners to advanced personnel, a feature that helps to ease skills shortage pressures and costs. OPTIME’s intuitive operation via mobile app
ensures smooth operation ranging from individual machines to entire facilities.
• Easy to scale. OPTIME Ecosystem’s ease of use and affordability make it easy to scale up and expand the scope of particular applications in just a few steps. The Ecosystem offers a complete overview of all machines and lubrication points. Easy-to-understand alarms and automatic analytics make it simple to know what to do next.
• Backed by experience. OPTIME is based on Schaeffler’s long-standing expertise in bearing technology, vibration analysis, and lubrication. Its product design is consistently geared towards the day-to-day tasks of maintenance teams.
• Prompt return on investment. By reducing the risk of unplanned downtime, OPTIME Ecosystem offers a quick return on investment. Its cost efficiency also makes comprehensive condition monitoring and smart lubrication affordable.
Real-time monitoring
OPTIME’s 24/7 monitoring capability offers real-time data and analysis and allows maintenance technicians to tackle emerging issues promptly, which is a key factor in saving time and resources.
An integral component of the system is the OPTIME ExpertViewer digital service. This service is compatible with OPTIME and “OPTIME-ready” data, including data from Schaeffler SmartCheck and Schaeffler ProLink. ProLink, like SmartCheck, is part
of Schaeffler’s range of innovative monitoring tools designed to work seamlessly with OPTIME.
“The range of maintenance functions covered by OPTIME is very broad, and it is extremely cost-efficient,” says Mark. “Even so, it is part of an even bigger picture that involves selecting bearings suitable for the job in hand in the first place, then mounting them properly to optimise their lifespan and trouble-free performance,” says Mark. Proper mounting and alignment of bearings is essential to
enduring high performance. The Schaeffler Plummer Block SES split design, left, enables quicker access for maintenance and repairs of the system, also integrates readily with OPTIME 24/7 monitoring and automatic lubrication.
Safety in battery production due to long-term tests
Two years ago, igus presented the E6.29, the first certified energy chain for dry cleanrooms. In order to offer customers long-term security, the motion plastics specialist commissioned the Fraunhofer IPA to carry out a test to investigate the ageing behaviour of its e-chains in the dry cleanroom - with positive results. Together with the IPA, the company has now developed new certificates that confirm the suitability of the energy chains E6, e-skin flat, e-skin soft and easy chain E14 for dry cleanrooms in long-term tests.
A high degree of cleanliness is essential in semiconductor and battery production. As these technologies have to deliver increasing performance and be as small as possible, they are becoming more sensitive. This also increases the requirements regarding production environments, which are fulfilled by a combination of dry rooms and cleanrooms.
However, not all machine components can withstand these demanding environmental conditions. In dry cleanrooms, many systems have a short service life and need to be replaced after two to three months.
Particle emissions in particular can increase significantly due to the dry conditions as the materials are often not designed for this and become brittle. Therefore, igus has tested its portfolio of cleanroom-compatible energy chains such as the e-skin soft, e-skin flat and E6 in this dry environment.
Together with the Fraunhofer IPA, there are now two new certificates that verify the durability and purity of these e-chains in dry environments with a relative humidity of less than 1%.
High degree of cleanliness over 10 months and 15 million double strokes
The two new certificates are divided into “Pre-aging” and “Aging behaviour”. For the “Aging behaviour” certificate, two of the energy supply systems, E6.J and the e-skin flat system, were tested in the dry room over a period of 10 months. In the process, they completed over 15 million double strokes.
The systems were tested and certified for their ISO class every two months. The e-skin flat survived the double strokes without problems and received the best possible certification of ISO Class 4. A higher certification is not possible because the test environment (ISO Class 3 dry cleanroom with a relative humidity of less than 1%, corresponding to a dew point of -40°C) does not allow for this.
The E6.J was also able to maintain this result for four months, but ended up with ISO Class 5, which is a very good result for battery production.
The igus e-chains have now also proven their suitability for dry cleanrooms in long-term tests and received two new certificates from the Fraunhofer IPA. (Source: igus GmbH)
The “Pre-aging” certificate, which was commissioned for the e-skin soft and easy chain E14 energy supply systems, certifies the systems after 15 million double strokes and 10 months in the dry room. Here too, the igus e-chains received the best possible ISO Class 4 certification.
Thanks to these long-term studies and certifications from the Fraunhofer IPA, igus was able to confirm that the energy supply systems have very low particle emissions and are therefore safe for automation in the dry cleanroom. www.treotham.com.au
Why energy efficiency is the ‘first fuel’ to power
Energy efficiency is essential for cutting emissions, reducing energy bills and strengthening energy security. For machine shops, improving energy efficiency is not only a financial necessity but also vital for building a sustainable future.
With economic uncertainty, labour shortages and rising material costs, the manufacturing sector must move beyond traditional methods.
Let’s look at five different ways in which adopting a holistic approach, optimising processes and integrating digital tools enables manufacturers to reduce energy consumption — while maintaining productivity and high-quality output.
A holistic approach: integrating technology for greater efficiency
Energy efficiency requires a connected, system-wide approach and optimising one aspect of production, without considering the full process, can create inefficiencies elsewhere. Instead, a holistic view ensures improvements in one area don’t lead to bottlenecks in another.
By using digital tools that monitor machine performance and energy use, manufacturers can make data-driven decisions to reduce waste and improve equipment effectiveness.
Collecting and analysing real-time data allows machine shops to quickly identify where energy is being wasted and take immediate corrective action. This approach helps manufacturers improve overall performance and energy efficiency while avoiding unnecessary resource use.
Energy efficiency isn’t just about investing in high-quality tools — it’s about using them effectively. Lean manufacturing principles, which focus on minimising waste and optimising workflows, are critical for improving efficiency.
Techniques such as the 5S methodology (Sort, Set in Order, Shine, Standardise, Sustain) create organised workspaces that improve safety, reduce energy waste and enhance workflow.
Value Stream Mapping (VSM) is another powerful tool that helps visualise the flow of materials and information throughout production. By identifying and eliminating bottlenecks, VSM enhances both productivity and energy efficiency.
Regular performance analysis, such as tracking Overall Equipment Effectiveness (OEE), allows manufacturers to identify inefficiencies, while strategies like Single-Minute Exchange of Die (SMED) and Total Productive Maintenance (TPM) help reduce setup times and increase equipment reliability.
Smarter tool management: digital integration for enhanced precision
Effective tool management is key to improving energy efficiency. By integrating digital tools with CAD/CAM software, manufacturers can select the most suitable tools for each job, reducing errors and minimising energy consumption.
Regular tool maintenance, guided by digital monitoring systems, ensures optimal tool performance, preventing the inefficiencies that arise from poorly maintained equipment.
One example of digital integration is Sandvik
Coromant’s CoroPlus® Tool Library, which works with Mastercam® CAD/CAM software. This system provides users with a comprehensive tool library that offers recommendations based on material, operation and machine type.
Users can import tool assembly data and optimise machining processes with 3D models and recommended cutting data. By reducing manual data entry and errors, this solution helps machine shops operate more efficiently.
A pump gear manufacturer in the oil industry used this solution to reduce a component’s production time from 129 minutes to 75, decreased tool use from six to four and significantly improved tool life. These improvements not only enhanced machining results but also increased operational efficiency, reducing energy consumption.
Automation: boosting productivity and energy savings
Automation is a powerful tool for enhancing both productivity and energy efficiency. By automating repetitive tasks, machine shops can free skilled workers to focus on more complex operations. Automation helps reduce errors, minimise waste and optimise workflows, all of which are key to improving energy efficiency. This aligns with the IEA’s view that digitalisation can improve the energy intensity of manufacturing.
Additionally, automation helps mitigate labour shortages and rising labour costs by reducing reliance on manual work for routine tasks. Automated systems can handle high-volume, repetitive processes more consistently, reducing energy consumption and ensuring higher precision in production.
Simulation software: cutting waste and enhancing accuracy
Simulation software allows manufacturers to test and
optimise production processes virtually, significantly reducing the need for resource-intensive trial and error. This not only saves time and money but also reduces material waste and energy consumption. By refining operations before they are implemented in the real world, manufacturers can ensure that processes are as efficient as possible from the start.
For example, Vericut simulation software allows manufacturers to simulate CNC operations before actual production, optimising cutting parameters and reducing errors.
This helps improve setup times, reduces energy waste and ensures predictable production schedules, boosting both productivity and efficiency.
Energy efficiency as a strategic priority
Energy efficiency is not just a cost-saving measure; it’s a strategic priority for machine shops. Reliable data collection and analysis are crucial for improving efficiency and overall equipment effectiveness.
Tools like CoroPlus Machining Insights provide centralised machine data oversight, helping manufacturers capture performance data and make informed decisions to increase productivity.
This focus on data-driven improvements leads to what Sandvik Coromant calls Manufacturing Wellness — optimised processes, reduced waste and increased productivity. Seeking expert advice is another way to fast-track progress. Sandvik Coromant’s technical support team can guide manufacturers through process improvements and cost-reduction strategies to help them achieve energy efficiency.
As the push for Net Zero Emissions by 2050 intensifies, energy efficiency will remain a critical focus for the manufacturing sector. Machine shops that prioritise it today will not only reduce energy consumption and costs but will also be better positioned to thrive in an increasingly challenging market.
Skills Group welcomes NCEA overhaul
Skills Group welcomes the Government’s renewed focus on strengthening vocational pathways as part of the proposed NCEA reform.
The major overhaul of NCEA aims to create more robust and coherent vocational pathway options, ensuring that young people can pursue valued industry-related learning and develop the real-world skills demanded by industry.
Skills Group Chief Executive Rosanne Graham says this direction is timely and necessary.
“We strongly support the Government’s intention to rebalance the focus of the secondary qualifications system and to work with industry to develop better vocational pathways. For far too long, vocational options have been viewed as a lesser option.
“It’s time to recognise and elevate the value of vocational careers and better prepare all our young people for successful careers in essential industries,” says Rosanne.
A Skills Group nationwide learner outlook survey revealed that school leavers are significantly less
certain about their next steps in terms of career progression.
“This is an indicator that the youngest of our learners need more support than others to enter post-secondary education.”
Skills Group delivers hands-on, industry-led training to over 23,000 learners each year – from school leavers to apprentices, to career professionals. With 15 vocational locations across New Zealand the organisation offers a wide range of programmes, focussed on industries with strong employment prospects that support New Zealand’s economic growth and success.
Rosanne says the plans for industry involvement in the development of standards and programmes will help create smooth transitions for young people and instil core employability skills.
“We know that structured, purposeful learning –especially when delivered through partnerships with industry – sets people up for long-term success. Students are more engaged because their learning
is relevant, and they are more employable through gaining real workplace knowledge and experience. The reforms are also a step forward in addressing the long-standing gap in clear pathways for students who are not headed to university - only 30 percent of school leavers go on to study for a degree.
Research shows that approximately 11% of students are becoming NEET (not in employment, education, or training) while 6% are going into apprenticeships straight from school. This highlights the pressing need for more structured vocational pathways to support a broader range of learners.
“For many young people, academic study isn’t the immediate destination or goal but that doesn’t mean they should leave school uncertain about their next step,” says Rosanne.
“All young people deserve clear and well supported pathways into meaningful careers, whether that’s in the trades or service industries. Vocational education must be visible, valued, and seamlessly integrated as part of the senior secondary school journey.”
Tennex Group backs Nurox Hydrothermal to drive sustainable hazardous waste management
Nurox Hydrothermal, a cleantech company that has developed an innovative proprietary technology to deconstruct hazardous waste sustainably, has entered a new partnership with Interwaste, New Zealand’s leading medical and biohazardous waste management provider, to scale its operations across New Zealand and beyond.
The Nurox technology uses only heat, water and air to safely deconstruct a wide range of hazardous wastes, including PFAS, cytotoxic pharmaceuticals, medical and industrial chemical residues, into clean water, inert compounds and acetic acid, a valuable platform chemical - all without generating harmful by-products or emissions.
“We’re excited to join forces with Interwaste to bring our novel waste management solution to market,” says Duncan Stewart, co-founder and CEO of Nurox.
“Hazardous waste generation and disposal is an enormous problem worldwide that can pose significant health and environmental risks if not treated properly.
“There is a global need for more sustainable processes in how we manage hazardous wastes and this is a particular problem in New Zealand which has limited technology alternatives to dispose of many of our most hazardous waste streams.
“Our technology provides a solution for many wastes that are currently sent offshore for incineration. It also provides a cleaner alternative to incineration - protecting the environment and enabling the
recovery of valuable resources.
“With the support from Interwaste, Nurox is well positioned to help businesses reduce risks and emissions and transform the way industries manage hazardous waste.”
Kelvin Hyland, Chief Executive of Tennex Group, says this partnership marks a major milestone in New Zealand’s capability in clean technology to process hazardous waste in New Zealand, to ensure we meet our international treaty obligations.
“By partnering with Nurox, we’re bringing to market a powerful new tool that supports a circular economy, reducing New Zealand’s reliance on offshore disposal.
“This partnership reflects our shared commitment in innovation and sustainability, and we’re proud to work with Nurox as we pave the way together to a more sustainable approach to waste management.”
The Nurox business model is focused on scaling internationally through an IP-dense, light-capex approach allowing for a mix of Equipment-as-aService and technology licensing models.
The proposed plants
have met with support from the medical sector, including from Douglas Pharmaceuticals, New Zealand’s largest pharmaceutical company.
“As a business, we’re always looking for ways to improve the sustainability and resilience across our supply chains and we welcome any new innovation that leads to better environmental outcomes,” says Kent Durbin, Chief Financial Officer of Douglas Pharmaceuticals.
The first plant will be commissioned in New Zealand in 2026, with the second plant following shortly after. Interwaste clients will be able to access Nurox’s hydrothermal processing solution as soon as the plants open.
Real Steel constructing state-of-the-art factory in Hautapu Industrial Park
Real Steel, has commenced construction on a brand-new, purpose-built 7,700m² steel processing facility in the Hautapu Industrial Park (Cambridge) strategically located in the heart of the Golden Triangle adjacent to State Highway 1.
The new greenfields factory has been designed from the ground up for optimum workflow, efficiency, and sustainability. The investment will enable Real Steel to install some of the largest and most advanced steel processing machinery available in the Southern Hemisphere, opening the door to new ways of designing and building with steel.
Construction of the facility is led by Foster Group,
one of New Zealand’s most respected commercial and industrial builders, bringing their expertise and commitment to quality to this landmark project.
“This development is about building NewZealand’s future in steel,” said Luke Mathieson, Managing Director of Real Steel.
“Hautapu’s central location means we can deliver to our customers more quickly and efficiently than ever before, while our investment in cutting-edge technology will redefine what’s possible for NZ manufacturing.”
Located within the fast-growing Hautapu Industrial Zone — a hub for logistics, manufacturing, and
innovation — the facility will serve customers across the Waikato, Auckland, and surrounding regions with unmatched speed and reliability.
“We’re not just adding capacity, we’re reshaping how steel is processed and delivered in New Zealand.”
Turning dreams into reality with New Zealand Space Scholarships
Working alongside scientists and engineers on world-leading space missions is a dream for many, and in 2026, it will become a reality for a select group of New Zealand post-graduate students, says Andrew Johnson, Deputy Head of the New Zealand Space Agency.
“Applications are open now for the 2026 New Zealand Space Scholarship, which will prepare post-graduate students for future careers in New Zealand’s growing space and advanced aviation sectors,” says Andrew.
“Successful applicants will be awarded a three-month internship at NASA’s Jet Propulsion Laboratory (JPL) in Southern California, where they will contribute to cutting-edge space technology projects.
“This is an exciting opportunity, and the New Zealand Space Agency is proud to support the next generation of science and space innovators.
“Students studying engineering, science or computer science, technology or mathematics at post-graduate level in 2026 with an interest in space and advanced aviation are encouraged to apply.
“New Zealand’s space and advanced aviation sectors are at the forefront of innovation, and the New Zealand Space Scholarship provides an opportunity for post-graduate students to gain valuable skills and experience overseas before bringing that experience and expertise back to New Zealand.”
A recent economic report shows New Zealand’s space sector increased revenue by 53 per cent in the five years to 2024, a faster rate of expansion than the world’s space economy. The space sector contributed $2.47b to the economy, while the advanced aviation sector, which overlaps with the space sector, contributed $480 million.
Since the scholarship programme began in 2018,
28 students have been awarded scholarships and participated in internship programmes at international space research institutes in the United States.
Each scholarship includes:
• Return airfares to the United States
• Accommodation costs
• A living allowance
The New Zealand Space Scholarship, alongside the Prime Minister’s Space Prizes, supports the Government’s goal of building an aerospace-capable workforce – one of five key objectives in the New Zealand Space and Advanced Aviation Strategy 2024–2030.
Applications close Sunday, 19 October 2025.
For eligibility criteria and application details, visit the New Zealand Space Scholarship webpage.
NZ Vocational Education and Training Research Forum returns in-person
The New Zealand Vocational Education and Training Research Forum (NZVETRF) is returning as an in-person event this November, marking the 19th edition of the Forum and the first in-person gathering since 2019.
Co-hosted by Skills Group and the Building and Construction Industry Training Organisation (BCITO), the 2025 Forum carries the theme ‘Rebuilding Together’, showcasing high-quality research. The event will take place 17–18 November 2025 at Te Papa, Wellington.
As co-hosts, Skills Group and BCITO bring together the strengths of New Zealand’s largest private training establishment and largest apprenticeship provider. Both organisations share deep experience in education and industry collaboration – the foundation of high-quality vocational education. This year’s Forum is a call to educators and employers
alike to focus on what works, as the sector navigates its next transformation.
The co-hosts are also pleased to announce that Kathryn Rowan, Executive Director of the Switzerland-headquartered Global Apprenticeship Network (GAN) will make a keynote address at this year’s Forum.
The GAN is a global movement, founded by UN Agencies and governed by a private sector board of multi-national companies committed to work-based learning and apprenticeships.
The Forum represents a vital opportunity to showcase research and strengthen cross-sector collaboration, and a cross-sector and pan-industry event.
This ensures New Zealand maintains its evidence-driven approach to vocational education, sharing and drawing on best practices here and overseas.
In line with that approach, researchers, practitioners, and policy makers are now invited to submit abstracts for presentation at the Forum.
Presentations will demonstrate evidence-based outcomes, good and emerging practices, collaborative activity, fostering networks and informing policy development.
Submissions that honour Te Tiriti o Waitangi and incorporate Maori perspectives in VET innovation are encouraged.
Abstracts should be no longer than 300 words, outlining their research and intended presentations. The submission deadline is 5pm, 17 September 2025
To register for the Forum, or to submit an abstract go to: https://events.humanitix.com/new-zealand-vocational-education-and-training-forum
Does AI actually boost productivity? The evidence is murky
-John Whittle, Director, Data61, CSIRO
There’s been much talk recently – especially among politicians – about productivity. And for good reason: Australia’s labour productivity growth sits at a 60-year low.
To address this, Prime Minister Anthony Albanese convened a productivity round table. This coincided with the release of an interim report from the Productivity Commission, which is looking at five pillars of reform. One of these is the role of data and digital technologies, including artificial intelligence (AI).
This will be music to the ears of the tech and business sectors, which have been enthusiastically promoting the productivity benefits of AI.
In fact, the Business Council of Australia also said last month that AI is the single greatest opportunity in a generation to lift productivity.
But what do we really know about how AI impacts productivity?
What is productivity?
Put simply, productivity is how much output (goods and services) we can produce from a given amount of inputs (such as labour and raw materials).
It matters because higher productivity typically translates to a higher standard of living. Productivity growth has accounted for 80% of Australia’s income growth over the past three decades.
Productivity can be thought of as individual, organisational or national.
Your individual productivity is how efficiently you manage your time and resources to complete tasks. How many emails can you respond to in an hour? How many products can you check for defects in a day?
Organisational productivity is how well an organisation achieves its goals. For example, in a research organisation, how many top-quality research papers are produced?
National productivity is the economic efficiency of a nation, often measured as gross domestic product per hour worked. It is effectively an aggregate of the other forms. But it’s notoriously difficult to track how changes in individual or organisational productivity translate into national GDP per hour worked.
AI and individual productivity
The nascent research examining the relationship between AI and individual productivity shows mixed results.
A 2025 real-world study of AI and productivity involved 776 experienced product professionals at US multinational company Procter & Gamble.
The study showed that individuals randomly assigned to use AI performed as well as a team of two without.
A similar study in 2023 with 750 consultants from Boston Consulting Group found tasks were 18% faster with generative AI.
A 2023 paper reported on an early generative AI system in a Fortune 500 software company used by 5,200 customer support agents.
The system showed a 14% increase in the number of issues resolved per hour. For less experienced agents, productivity increased by 35%.
But AI doesn’t always increase individual productivity.
A survey of 2,500 professionals found generative AI actually increased workload for 77% of workers. Some 47% said they didn’t know how to unlock productivity benefits.
The study points to barriers such as the need to verify and/or correct AI outputs, the need for AI upskilling, and unreasonable expectations about what AI can do.
A recent CSIRO study examined the daily use of Microsoft 365 Copilot by 300 employees of a government organisation. While the majority self-reported productivity benefits, a sizeable minority (30%) did not.
Even those workers who reported productivity improvements expected greater productivity benefits than were delivered.
AI and organisational productivity
It’s difficult, if not impossible, to attribute changes in an organisation’s productivity to the introduction of AI. Businesses are sensitive to many social and organisational factors, any one of which could be the reason for a change in productivity.
Nevertheless, the Organisation for Economic Co-operation and Development (OECD) has estimated the productivity benefits of traditional AI – that is, machine learning applied for an industry-specific task – to be zero to 11% at the organisational level.
A 2024 summary paper cites independent studies showing increases in organisational productivity from AI in Germany, Italy and Taiwan.
In contrast, a 2022 analysis of 300,000 US firms didn’t find a significant correlation between AI adoption and productivity, but did for other technologies such as robotics and cloud computing.
Likely explanations are that AI hasn’t yet had an effect on many firms, or simply that it’s too hard to disentangle the impact of AI given it’s never applied in isolation.
AI productivity increases can also sometimes be masked by additional human labour needed to train or operate AI systems. Take Amazon’s Just Walk Out technology for shops.
Publicly launched in 2018, it was intended to reduce labour as customer purchases would be fully automated. But it reportedly relied on hiring
around 1,000 workers in India for quality control. Amazon has labelled these reports “erroneous”. More generally, think about the unknown number (but likely millions) of people paid to label data for AI models.
AI and national productivity
The picture at a national level is even murkier. Clearly, AI hasn’t yet impacted national productivity. It can be argued that technology developments take time to affect national productivity, as companies need to figure out how to use the technology and put the necessary infrastructure and skills in place. However, this is not guaranteed. For example, while there is consensus that the internet led to productivity improvements, the effects of mobile phones and social media are more contested, and their impacts are more apparent in some industries (such as entertainment) than others.
Productivity isn’t just doing things faster
The common narrative around AI and productivity is that AI automates mundane tasks, making us faster at doing things and giving us more time for creative pursuits.
This, however, is a naive view of how work happens. Just because you can deal with your inbox more quickly doesn’t mean you’ll spend your afternoon on the beach.
The more emails you fire off, the more you’ll receive back, and the never-ending cycle continues. Faster isn’t always better. Sometimes, we need to slow down to be more productive. That’s when great ideas happen.
Imagine a world in which AI isn’t simply about speeding up tasks but proactively slows us down, to give us space to be more innovative, and more productive.
That’s the real untapped opportunity with AI.
Is software development manufacturing?
THE CASE FOR WEIGHTLESS EXPORTS
Say “manufacturing” and most people picture sparks from a weld, sawdust from timber, or the whir of a CNC. We equate it with the physical and tangible.
But what if our most scalable factories don’t make anything you can touch? What if software, intangible, weightless and infinitely reproducible, is already the most powerful manufacturing industry we have?
It’s time we asked a simple: Could software development be manufacturing?
Manufacturing Principles, Different Medium
‘Manufacturing’, according to Wikipedia, is the creation or production of goods with the help of equipment, labour, machines, tools and chemical or biological processing or formulation. If you strip away the noise, manufacturing is about applying discipline to value creation:
Standards before scale – chaos doesn’t scale. Whether it’s ISO audits on a production line or unit tests in a dev pipeline, quality comes from codified standards.
Flow, not friction – lean talks takt time, bottlenecks and waste; Agile talks sprint velocity and backlog. Both are obsessed with minimising waste and maximising throughput.
Customer Focus – whether it’s gearboxes or gigabytes, real manufacturing starts with solving actual customer problems, not filling time.
Global scalability – once the process is right, standard processes are created, every extra unit costs marginally less. For plastics, that’s running another shift. For SaaS, it’s another thousand users for near-zero marginal cost.
By those measures, software development is not only manufacturing, it’s the purest form we’ve ever had.
The Scale Problem with “Stuff You Can Grow”
New Zealand’s export story is dominated by the primary sector. Food and fibre exports are worth ~NZ$55–60 billion a year, more than half of all exports. These are vital, but constrained. You can only milk a cow so many times and grow so many hectares of fruit or timber. At best, these industries grow, but they don’t scale.
Traditional manufacturing (goods-based) contributes around NZ$38–40 billion a year. That matters. But it too is tethered to physical inputs, energy, shipping lanes and supply chain risks.
Then there’s software: NZ$3.1 billion in exports today. Small in comparison, but a sector with the unique ability to scale without constraint. No drought, shipping delays or freight costs. Software is manufactured once and exported everywhere. This is what we mean by “weightless exports” and it’s exactly the diversification our economy needs.
Proof We Can Do It: Kiwi Software
Success Stories
We don’t need theory. The examples are already here.
From a Wellington start-up in 2006 to one of NZ’s most valuable companies, with millions of subscribers across 180 countries. Its acquisition of Melio shows what’s possible when SaaS manufacturing meets global demand.
A Tauranga-based legaltech Saas offering making Deloitte’s Fast 50, raising significant capital, and openly aspiring to follow Xero’s global trajectory.
Exporting Kiwi SaaS smarts in retail crime prevention and health tech. Both part of Microsoft’s Scaling SaaS Exports Initiative; global players born here.
Did you know, the NZ Game Dev industry grew 26% in 2024? That’s ten times global rates and is on-track to hit $1 billion in exports!
(Path of Exile) grew to 240 staff and has paid almost $100 million in dividends back to its (Chinese) parent and shows what’s possible when true global scale is achieved.
Founded by DayZ creator Dean Hall, has global partnerships and bold ambitions.
These firms prove software is already a manufactured export. Each one is disciplined, process-driven, quality-focused and scaling globally.
There are many other manufacturing examples where software is the primary output but also supported with the hardware to deliver the software product. Look hard enough and New Zealand is littered with world-class examples.
These businesses can create strength in the regions, not just the main cities. You just have to drive into Waikato Innovation Park and look who is based there
– Torutek, Smartrak, Map of Ag, MoreforApps and the list goes on, SMEs driving growth through code and technology.
Why Treating Software as Manufacturing Matters
This isn’t just semantics. Recognising software as manufacturing reframes how we support, invest in and celebrate it:
Decoupling from natural limits – primary exports rely on land, climate, and biosecurity. Software doesn’t. Its scaling depends only on talent and process.
Resilience against shocks – weightless exports don’t face port bottlenecks, droughts, or commodity cycles. They strengthen national resilience.
Shared discipline – software has the same DNA as high-performance manufacturing: rigorous quality, continuous improvement, standardisation, customer pull. It’s not foreign to us, it’s an evolution.
Productivity multipliers – every software development success not only earns export dollars but also delivers high-value jobs while embedding tools that lift productivity across the
David Altena is Head of Growth & Partnerships at SmartSpace.ai & Co-Founder & Host of The Better SMB Podcast.
david@altena.solutions
domestic economy. Think of Xero shortening accounting time, or gaming studios pushing graphics and design into other sectors.
Compounding impact – each additional software firm scales faster and further than the one before. The more we have, the bigger the national uplift.
If we’re serious about fixing our productivity crisis, software exports are a lever we can’t ignore.
The Cultural Challenge
We put milk powder and logs on a pedestal and treat software like a niche sideshow. As if exports only “count” if they’re shipped in a container.
This mindset is costing us. Every time we dismiss software as “not real manufacturing,” we undercut the very industries with the greatest capacity to scale and diversify our economy.
The truth is simple: physical or virtual, the principles of manufacturing excellence haven’t changed. We need to stop clinging to outdated definitions.
The Factory of the Future Writes Code
So, let’s ask again: is software development manufacturing? The answer matters.
If we say no, we continue to define our export future by industries that can only grow linearly, bound to land, weather and finite supply.
If we say yes, we open the door to treating gaming, fintech and digital products as core pillars of our export strategy, investing in them with the same seriousness we apply to manufacturing and other industries.
The challenge is cultural, not technical. We already have the talent, the examples and know-how. Software manufacturing can happen anywhere in New Zealand, supporting the regions, decreasing pressure on transport infrastructure. The question is whether we have the ambition to call software what it is: manufacturing.
If we keep celebrating industries that grow, and not those with true potential to scale, New Zealand will stay stuck.
Rob Bull Director of the New Zealand Lean Academy rob@nzla.nz
